BY: Saneliso Mlambo
South Africa’s economy saw a positive growth of 0.6% in the fourth quarter of 2024, marking a rebound after a slight contraction in the previous quarter.
The increase was driven by strong performance in the agricultural sector, which grew by 17.2%, contributing significantly to the overall GDP growth.
Other sectors also showed growth, with the trade sector rising by 1.4% and the finance industry expanding by 1.1%. However, the manufacturing, mining, and construction sectors experienced declines during the period.
For the full year 2024, South Africa’s GDP grew by 0.6%, with a 0.9% increase in the final quarter compared to the same period in 2023. Positive growth in household spending, boosted by pension reforms, played a role in this recovery.
The government has welcomed the growth, viewing it as a step toward economic recovery and job creation. Despite the positive outlook, challenges remain, and continued growth will depend on addressing structural economic issues.
Economists expect modest economic acceleration in 2025, supported by lower inflation, decreasing interest rates, and stronger consumer confidence, but caution that sustained growth will require significant reforms.