By 
South Africa’s economy is showing signs of recovery following a sluggish performance in the previous quarters. Mining and manufacturing are also showing signs of improvement.
Statistics South Africa (StatsSA), reported some growth in the country’s GDP in the second quarter. According to Stats SA, South Africa’s Gross Domestic Product (GDP) increased by 0,8% in the second quarter of 2025, following an increase of 0,1% in the first quarter of 2025.
The quantum leap can be attributed to eight industries that recorded gains in the second quarter. According to the report, the manufacturing industry increased by 1,8%, contributing 0,2 of a percentage point to GDP growth.
Seven of the ten manufacturing divisions reported positive growth rates. The largest positive contributions were reported for the petroleum, chemical products, rubber and plastic products division and the motor vehicles, parts and accessories and other transport equipment division.
The trade, catering and accommodation industry increased by 1,7%, contributing 0,2 of a percentage point. Increased economic activities were reported for retail trade, motor trade, accommodation and food and beverages.
The mining and quarrying industry increased by 3,7%, contributing 0,2 of a percentage point. The largest positive contributors were platinum group metals (PGMs), gold and chromium ore.
The transport, storage and communication industry decreased by 0,8%, contributing -0,1 of a percentage point. Decreased economic activities were reported for land transport and transport support services.
The construction industry decreased by 0,3%. Decreases were reported for residential buildings and non-residential buildings.
Household final consumption expenditure (HFCE) increased by 0,8%, contributing 0,6 of a percentage point to the total growth. Positive growth rates were reported for durable goods, semi-durable goods and services.
The main positive contributors to the increase in HFCE were expenditures on ‘other’ (2,6% and contributing 0,3 of a percentage point), restaurants and hotels (4,8% and contributing 0,2 of a percentage point), clothing and footwear (3,4% and contributing 0,2 of a percentage point), transport (0,7% and contributing 0,1 of a percentage point) and communication (1,1% and contributing 0,1 of a percentage point).
The negative contributors were expenditures on housing, water, electricity, gas and other fuels and alcoholic beverages, tobacco and narcotics.
Final consumption expenditure by general government increased by 0,7%, contributing 0,1 of a percentage point to the total growth. This was mainly driven by increases in purchases of goods and services and compensation of employees.
Gross fixed capital formation decreased by 1,4%, contributing -0,2 of a percentage point. The main negative contributors to the decrease were other assets (-9,9% and contributing -1,2 percentage points), transport equipment (-2,3% and contributing -0,3 of a percentage point) and non-residential buildings (-3,6% and contributing -0,2 of a percentage point).
There was a R16,6 billion build-up of inventories (seasonally adjusted and annualised value). Large increases in three industries, namely mining and quarrying; transport, storage and communication; and manufacturing, contributed to the inventory build-up.
Net exports contributed negatively (-0,3 of a percentage point) to expenditure on GDP. Exports of goods and services decreased by 3,2%, largely influenced by decreased trade in base metals and articles of base metals; vegetable products; and vehicles and transport equipment excluding large aircraft.
Imports of goods and services decreased by 2,1%, largely influenced by decreased trade in chemical products; machinery and electrical equipment; mineral products; and vegetable products.
