South Africa Economy Grows 0.8% in Second Quarter

South Africa's economy expanded by 0.8% in the second quarter of 2025, marking the fastest growth pace in two years and surpassing economists' expectations. This growth was primarily driven by strong rebounds in mining, manufacturing, and trade sectors, with significant contributions from petroleum, chemical products, motor vehicles, and platinum group metals. However, transport and construction sectors contracted, highlighting ongoing structural challenges. Despite this improvement, the economy's momentum remains below the 3% target needed to create a million jobs, with forecasts still around 1% growth for the year. Deputy Trade and Industry Minister Zuko Godlimpi emphasized addressing structural barriers like energy insecurity and outdated infrastructure, focusing on breaking up market concentration and supporting small, medium, and micro enterprises to foster inclusive growth. Overall, the growth signals positive movement but underscores the need for deeper economic reforms to achieve sustainable job creation and confidence.