Statistics South Africa reported that the country's economy grew by 1.1% in 2025, an improvement from the previous year's growth of 0.5%. The last quarter alone saw a growth of 0.4%, largely driven by robust performance in the finance, property, and business services sectors. Other contributing factors included positive metrics from trade, catering, and accommodation, with household spending increasing by 1.2% during the fourth quarter, indicating a slight rebound in consumer confidence and spending habits.

However, the manufacturing sector faced significant challenges, with eight out of ten divisions contracting, raising concerns about the sustainability of overall economic growth. Economists noted that rising oil prices from the Middle East could exacerbate issues by pushing petrol prices up by as much as R4. Meanwhile, agricultural growth remained modest at 0.4% in the last quarter, bolstered primarily by field crops and horticulture.

Investment spending also showed signs of decline in 2025, having decreased by 2.2% throughout the year despite a slight rebound of 1.3% in the fourth quarter. This indicates potential long-term structural issues within the economy that may hinder robust growth in the future, particularly if manufacturing does not recover. The mixed economic signals highlight the need for policy interventions to stabilize key sectors.