South Africa’s economy showed signs of strengthening in the second quarter of 2025, with GDP rising by 0.8% after marginal growth of 0.1% in the first quarter. Growth was mainly driven by manufacturing, mining, and trade, with household spending and lower imports also contributing.
Economist Ulrich Joubert said, “This is good news. If we can have an improved growth rate in the second quarter compared to the first quarter, then I say good news. Some forecasters initially projected less than 1% growth, but now some are even talking about growth of more than 1% this year.”
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However, ActionSA criticised the Government of National Unity for failing to tackle unemployment and sluggish economic performance. “Job losses in the manufacturing and automotive sectors, along with illicit trade, continue to cost the economy billions,” said ActionSA’s Matthew George.
GDP growth remains well below Treasury’s 1.9% forecast, underscoring ongoing economic challenges.
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