Government has welcomed the positive Gross Domestic Product (GDP) growth of 0.1% in the first quarter of 2025, as announced by Statistics South Africa on Tuesday.
Real GDP increased marginally by some 0.1% during the first quarter of 2025, following an increase of 0.4% in the previous quarter.“The growth, though marginal, reflects encouraging progress in key sectors, particularly agriculture, which grew by 15.8% due to increased activity In horticulture and animal products.“The transport, storage and communication sector also made a strong contribution, driven by gains in land and air transport. Government remains committed to driving inclusive growth and strengthening the foundations of economic recovery,” Government Communication and Information System Acting Director-General, Nomonde Mnukwa. Despite the sluggish expansion, the South African economy continues clawing back ground lost from the blow of the COVID-19 pandemic, which saw GDP drop to a low of R954 billion in the second quarter of 2020 to R1 170 billion in the first quarter of 2025.
The agriculture, forestry and fishing industry increased by 15.8%, contributing 0.4 of a percentage point to the positive GDP growth. This was primarily due to increased economic activities reported for horticulture and animal products.
The transport, storage and communication industry increased by 2.4%, contributing 0.2 of a percentage point. Stats SA said that increased economic activities were reported for land transport, air transport and transport support services. According to the institution, finance, real estate and business services increased by some 0.2% adding 0.1% to the GDP. Increased economic activities were reported for insurance and pension funding and auxiliary activities.“The trade, catering and accommodation industry increased by 0.5%, contributing 0.1 of a percentage point. Increased economic activities were reported for retail trade, motor trade, accommodation and food and beverages,” Statistics South Africa said.Originally posted on SAnews.gov.za
