South Africa’s Economy Stalls in Q1 2025 as Growth Slows to 0.1%

GDP Growth Falls Flat in Q1

South Africa’s economy recorded marginal growth of just 0.1% in the first quarter of 2025, according to Stats SA. The figure reflects deepening economic challenges and underscores the urgency of policy reform.

Mining and Manufacturing Decline

The biggest drags on growth were the mining and manufacturing industries, which continue to struggle with unreliable electricity supply, rising costs, and global commodity volatility.

Agriculture a Rare Bright Spot

Agriculture grew by a significant 15%, aided by favorable climate conditions and improved yields. Analysts say this is not enough to offset the broader economic underperformance.

SARB Lowers Growth Forecast

In response, the South African Reserve Bank has revised its 2025 GDP forecast downward from 1.7% to 1.2%. Structural bottlenecks and weak investor sentiment remain key risks.