SA economy records modest Q3 growth, led by mining and agriculture

South Africa's economy grew slightly in the third quarter, marking the fourth consecutive rise in economic activity.

Statistics South Africa's latest numbers.show that real gross domestic product or GDP strengthened by 0,5% in Q3 (July–September) of 2025.

This follows on marginal growth of 0,1% in the first quarter and a revised increase of 0,9% in the second quarter.

Nine of the ten industries on the production (supply) side of the economy were stronger in the third quarter, led by mining and quarrying.

Next in recording the highest growth rates were agriculture, forestry and fishing; and trade, catering and accommodation.

The expenditure (demand) side of the economy was also lifted by stronger gross fixed capital formation, household consumption, exports and government consumption.

Household consumption recorded a sixth consecutive rise.

Stephen Grootes takes a closer look at the numbers with Goolam Ballim, chief economist for the Standard Bank Group.

The 0.5% expansion in the economy was consistent with analyst expectations, Ballim says.

He makes the point that this figure is for quarter on quarter GDP growth, not year on year, voicing a tentative note of optimism.

"What it therefore alludes to is the plausibility that for the whole of 2025, the economy could still muster roughly 1.1-1.2% annual growth - now that's double the 0.5%."

What Ballim describes as the last point of 'modest cheer' is that the economy is neither contracting nor stagnating, but seems to then be enjoying gentle ascendancy.

He also comments on a fresh increase in gross fixed capital formation (spending on infrastructure and other fixed assets), by 1.6%. This could augur well for  growth in the construction sector in 2026, he agrees.

Listen to Ballim's analysis in the audio at the top of the article