South Africa’s Economy Sees Sluggish Growth of 0.1% in First Quarter of 2025

Posted on June 3, 2025
by Yashmika Dukaran


South Africa’s economy inched forward by just 0.1% in the first quarter of 2025, according to data released by Statistician-General Risenga Maluleke on Tuesday. While modest, the growth was largely driven by the agricultural sector, which nearly doubled its contribution—from R29 billion to R56 billion.

Sectors that contributed positively include agriculture, forestry and fishing, general government services, and mining. In contrast, utilities (electricity, gas, and water) remained stagnant, while trade, catering and accommodation, construction, and transport saw declines.

“The real economy is now valued at R1.7 trillion,” said Maluleke. However, he noted the pace of economic expansion remains too slow to make a significant impact.

“We can see a concerning trend. In 2024, the economy only grew by 0.1% and 0.3% in the first two quarters, and again by 0.3% in the third. This sluggish growth puts us at risk of sliding into negative territory at any given time,” he warned.

Analysts say the figures reflect broader challenges facing the South African economy, including energy constraints, high unemployment, and global economic headwinds.