South Africa's economy slows sharply in first quarter, recording a marginal 0.1% GDP growth

Stephen Grootes speaks to Ndumiso Kubheka, Chief Economist at KH Research Equity Partners about South Africa's 0.1% GDP growth in the first quarter of 2025.

Listen to the interview in the audio player below.

Statistics South Africa (Stats SA) on Tuesday reported that the country's economy grew by just 0,1% in the first quarter of this year, compared to the last quarter of last year.

Loadshedding, a downturn in manufacturing and lower platinum prices all contributing to bringing the economy down. 

Agricultural production though, up by 15,8%, which helped to keep the economy from shrinking.

Without the boost from agriculture, GDP would have contracted by 0,3%.

Speaking to Stephen Grootes on The Money Show, Ndumiso Kubheka, Chief Economist at KH Research Equity Partners says government does not have a clear plan to address the slowdown of the economy.

"Manufacturing accounts for about 13% of South Africa's economic structure, it then explains why that decline in the manufacturing sector led to such a low or marginal economic growth in the past quarter."

- Ndumiso Kubheka, chief economist at KH Research Equity Partners

"It appears whatever efforts are being made are not necessarily moving the needle, to the extent to which our economy requires to."

- Ndumiso Kubheka, chief economist at KH Research Equity Partners

"When it comes to the idea of economic planning, it raises questions or opportunities around what can the South African economy do to optimise the strength it presently has in terms of a services based and knowledge intensive economy..."

- Ndumiso Kubheka, chief economist at KH Research Equity Partners

"Agriculture has been a strong driver for the South African economy. At the peak of Covid we've seen its contributions."

- Ndumiso Kubheka, chief economist at KH Research Equity Partners

Scroll to the top of the article to listen to the full interview.