By 
South Africa has been on a recovery trajectory post COVID-19, which had international devastating effects; however, Stats SA shows that the country’s economy has stagnated in the first quarter of 2025.
According to the report by Stats SA, only four industries in South Africa held up the economy of the country, with agriculture being the star player. The report reveals that Real GDP increased by a mere 0.1% in the first quarter of 2025, this follows an increase of 0.4% in the fourth quarter 2024.
Expenditure on real GDP increased by 0,1% in the first quarter of 2025, following an increase of 0,5% in the fourth quarter of 2024.
At this rate, economic growth of the country might face serious challenges if a radical economic reformation strategy is not formulated and implemented, furthermore, the country is faced with a high rate of unemployment, especially amongst the youth.
The mining sector is facing serious issues, with load-shedding resolved, one would have hoped for a better industrial performance, however, according to Stats SA, the industry declined by 4.1% contributing -0,2 of a percentage point to the GDP. The largest negative contributors were platinum group metals (PGMs).
Agriculture has become the economic pillar of the country, it contributed the highest towards real GDP, the sector performed well experiencing an increase of 15.8% contributing 0.4% towards GDP growth.
The transport industry increased by 2,4%, contributing 0,2 of a percentage point. The manufacturing industry was the largest negative contributor, decreasing by 2,0% and contributing -0,2 of a percentage point. Household final consumption expenditure increased by 0,4%, contributing 0,3 of a percentage point to the total growth. Government final consumption expenditure decreased by 0,1%.
Gross fixed capital formation decreased by 1,7%, contributing -0,2 of a percentage point. Changes in inventories in the first quarter of 2025 contributed 0,3 of a percentage point. Net exports contributed -0,3 of a percentage point, following increases of 1,0% and 2,0% in exports and imports respectively.
The electricity, gas and water industry decreased by 2,6%, contributing -0,1 of a percentage point. This was largely due to decreases in electricity production and consumption as well as water consumption.
The construction industry decreased by 3,8%, contributing -0,1 of a percentage point. Decreases were reported for residential buildings and construction works.
