GDP bounces to 0.8% growth in Quarter 2

South Africa’s real Gross Domestic Product (GDP) has improved by some 0.8% in the second quarter of 2025.

This is following a marginal increase of some 0.1% in the first quarter.

“The mining and quarrying industry increased by 3.7%, contributing 0.2 of a percentage point. 

“The largest positive contributors were platinum group metals, gold and chromium ore,” Statistics South Africa (Stats SA) said on Tuesday.

The country’s manufacturing industry also increased by some 1.8% over that period – contributing 0.2% to the GDP.

“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 institution said.

On the downside, the transport, storage and communication industry decreased by 0.8%.
“Decreased economic activities were reported for land transport and transport support services.

“The construction industry [also] decreased by 0.3%. Decreases were reported for residential buildings and non-residential buildings,” Stats SA said.

Expenditure on GDP
South Africa’s Household Final Consumption Expenditure (HFCE) also rose – increasing by some 0.8% and 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,” Stats SA revealed. 

Access road to Citrusdal reopened after flood damage repairs

On Monday, 8 September 2025, Western Cape Minister of Infrastructure, Tertuis Simmers, reopened Main Road 310 (MR310) which connects the West Coast town of Citrusdal to the N7 highway. This vital access road was severely damaged following severe flood events on 13 June 2023 and 11 July 2024 that caused the nearby riverbank to burst and the course of the Olifants River to change, washing away much of the road in the process.

The town of Citrusdal, a major citrus-growing area, was particularly hard-hit and was cut off from vital transport links, which had a significant impact on the local economy, and the wellbeing of residents. The reconstruction of the MR310 was declared an emergency repair project for humanitarian reasons, with a key focus on restoring access and creating a more flood-resilient road, capable of better handling future flood events.

The riverbank was first to be repaired, after which significant work was completed on the road itself. This included the placing of new base layers and erosion protection works, as well as the replacement and upgrading of the road’s box culvert. The new culvert will be capable of effectively handling a 20-year design flood, thus lessening the risk of further damage to the road as the Western Cape experiences increasingly wet winters.

“The cost of these works in the 2023/24 financial year was R12.2 million, and an estimated R26 million was spent on this project in the 2024/25 financial year”, said Provincial Minister Simmers. 

“We understand infrastructure works, in this case transport infrastructure works, to be an enabler of economic growth and a support to the important citrus industry of the Western Cape”, he added. “With this project, we have done more than simply replace a road. We have instead rebuilt it and upgraded it for the demands of the future, ensuring that Citrusdal’s link to the Western Cape’s transport ecosystem remains unaffected for years to come.”
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