South Africa: SA Economy Grows 1.1 Percent in 2025 but Manufacturing Keeps Falling

South Africa’s economy grew by 1.1% in 2025, up from 0.5% the year before. Statistics South Africa (Stats SA) released the figures on Tuesday.

In the last three months of 2025, the economy grew by 0.4%. The finance, property and business services sector was the biggest driver. Trade, catering and accommodation also helped.

Household spending rose by 1.2% in the fourth quarter. South Africans bought more durable goods, everyday items and services. Spending on alcohol, tobacco and drugs was the only drag.

Agriculture grew by 0.4% in the fourth quarter, driven by field crops and horticultural products. Investment spending rose by 1.3% in the same period, but for the full year it was still down by 2.2%.

Professor Waldo Krugell, an economist at North-West University (NWU), said the numbers were worth celebrating.

“This is South Africa, so we have to be excited about decimal figures of growth,” Krugell said, The Citizen reported.

But manufacturing is a serious problem. Eight of the 10 manufacturing divisions reported negative growth. The worst performers were motor vehicles and car parts, wood and paper products, and food and beverages.

“The worrying part is the contraction in manufacturing,” Krugell said. “The manufacturing sector is struggling.”

Exports dropped by 0.6%, with fewer vehicles and less food and beverages shipped abroad. Imports rose by 0.5%, largely because of more machinery and electrical equipment coming in.

Johann Els, chief economist at PSG Financial Services, said the conflict in the Middle East has already pushed oil prices higher.

“The petrol price in South Africa could rise by as much as R4 per litre in April,” he said.

That could push inflation to around 4%, above the 3.4% previously expected. For the full year, average inflation could climb from 3.2% to about 3.7%.

By  Scrolla.