South Africa’s economy grew by 0.5% in the first quarter of the year, according to the latest figures released by Statistics South Africa, slightly outperforming expectations.
Chief Director at Statistics South Africa, Bokang Vumbukani-Lepolesa, said growth was largely supported by the services and primary sectors, with finance and agriculture making notable contributions.
She explained that the finance, real estate and business services sector remained one of the strongest contributors to economic activity during the quarter.
“The finance, real estate and business services industry increased by 0.9%, contributing 0.2 percentage points to GDP growth. Household final consumption expenditure increased by 0.1%, contributing 0.1 percentage points to the total,” Vumbukani-Lepolesa said.
Despite the positive result, manufacturing continued to place pressure on the overall economy, with five of the sector’s ten divisions recording negative growth.
Vumbukani-Lepolesa cautioned that although the economy showed modest improvement, uneven performance across industries points to persistent structural challenges that continue to constrain broader economic growth.
The latest GDP figures are likely to fuel ongoing debate about how South Africa can accelerate growth, create jobs and strengthen economic resilience in the face of domestic and global pressures.
VOC News
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