South Africa’s economy grew at its fastest pace in two years during the second quarter, driven by a rebound in the manufacturing and mining sectors.
The continent’s largest economy grew 0.8% in the three months to June, compared with the previous quarter. The growth was larger than the 0.6% median estimate of 13 economists surveyed by Bloomberg.
Goldman Sachs raised its 2025 GDP growth forecast for South Africa to 1.2%, from 1%, following what it referred to as an “upside surprise.” David Omojomolo, Africa economist at Capital Economics, wrote in a note: “We expect further modest GDP growth over the coming quarters, helped by lower interest rates and easing structural constraints.”
However, Washington’s imposition of a 30% tariff on South African goods, the highest rate in sub-Saharan Africa, is expected to affect economic performance from the third quarter onwards. President Cyril Ramaphosa said on Tuesday that Pretoria has sent officials to the US to prepare for a fresh round of trade negotiations, its latest attempt to strike a deal with the Trump administration.
