Pressure on for GNU to hit its economic growth of 3% in medium term

JOHANNESBURG - The pressure is on again for the Government of National Unity (GNU) to hit its economic growth target of 3% in the medium term after GDP accelerated in the second quarter.

The economy surpassed growth expectations in the three months through June, ticking up by 0.8%.

The economy grew a marginal 0.1% in the previous quarter.

Despite high hopes, the economy is yet to hit the right notes under the coalition government.

While the economy has seen three positive quarters since the end of 2024, the economy remains sluggish.

GDP growth is still expected to be only about 1% for 2025 as a whole, raising concerns the country is lagging behind and won’t be able to create jobs at the current rate.

While government has stood by its ambitious 3% growth target in the medium term, North West University Business School economist Raymond Parsons said there are still potential vulnerabilities in the present economic outlook.

This includes the negative performance of fixed capital formation, which Parsons describes as the kingpin of sustained economic growth.

ActionSA has called on government to confront its own industrial policy failures to address inefficiencies in key sectors.