South Africa’s economy grew 1.1% in 2025, slower than the country’s central bank and National Treasury had forecast, statistics agency data showed on Tuesday.
The country’s coalition government is trying to lift the growth rate after it has averaged less than 1% annually over the past decade
Statistician-General Risenga Maluleke told a press conference that “1% (growth) should not send a lot of excitement out there … because such growth will not be able to contain the joblessness that we see”.
The South African Reserve Bank had predicted a 1.3% increase in gross domestic product last year, and the National Treasury a 1.4% expansion.
Fourth-quarter growth of 0.4% was marginally better than expected in quarter-on-quarter terms, but at 0.8% on a year-on-year basis it undershot the median forecast in a Reuters poll of economists
Five of the 10 sectors tracked by Statistics South Africa grew in the fourth quarter, and five contracted
Growth was mainly concentrated in consumer-facing sectors, whereas primary and secondary parts of the economy shrank
Africa’s biggest economy saw investor confidence rise last year thanks to an improving fiscal picture and the government’s commitment to keeping inflation low
Gross fixed capital formation grew 1.3% in the fourth quarter, the second consecutive quarter of growth, mainly driven by the private sector. But economists say there needs to be much more fixed investment to meaningfully boost the growth rate.
