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South Africa economy expected to grow despite tough year for business

by Radarr Africa
South Africa economy expected to grow despite tough year for business

South Africa’s economy is expected to record modest growth in the fourth quarter of the year when the country’s statistics agency releases the latest Gross Domestic Product (GDP) figures on Tuesday.

According to analysts, the economy is likely to remain in positive territory despite a difficult operating environment for businesses during the year. The fourth-quarter figures, to be released by Statistics South Africa, will provide further insight into how the economy performed towards the end of 2025.

The year was marked by several challenges, including trade pressures linked to tariffs imposed by the United States, which weighed on some sectors of the economy.

Economists, however, expect the pace of growth in the final quarter to slow compared with the 0.5 per cent expansion recorded in the previous quarter.

Chief Investment Officer at Makwe Fund Managers, Makwe Masilela, noted that improved market sentiment and stronger commodity prices helped support the economy during 2025.

He explained that sectors such as agriculture are likely to make a positive contribution to GDP, driven by improved output and sustained export demand despite the tariff pressures.

However, Masilela cautioned that the manufacturing sector may continue to struggle following weak production figures recorded in November and December.

Despite the uneven performance across sectors, analysts maintain that the overall economy is still expected to record positive growth in the fourth quarter.

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