South Africa’s GDP increased by 0.5% in the first quarter, following an increase of 0.4% in the fourth quarter of 2025, Statistics South Africa (Stats SA) reports.

Its data shows that the finance, real estate and business services industry increased by 0.9%, contributing 0.2 of a percentage point. Increased economic activities were reported for financial intermediation and auxiliary activities.

The agriculture, forestry and fishing industry increased by 3.9%, contributing 0.1 of a percentage point, primarily owing to increased economic activities reported for field crops and horticulture products.

The trade, catering and accommodation industry increased by 0.7%, contributing 0.1 of a percentage point. Increased economic activities were reported for wholesale trade, motor trade, food and beverages and accommodation.

The transport, storage and communication industry increased by 0.7%, contributing 0.1 of a percentage point, with increased economic activities reported for land transport, air transport and transport support services.

The manufacturing industry, however, decreased by 0.8%, contributing -0.1 of a percentage point.

Stats SA points out that five of the ten manufacturing divisions reported negative growth rates. The largest negative contributions were reported for the petroleum, chemical products, rubber and plastic products; basic iron and steel, nonferrous metal products, metal products and machinery; and wood and wood products, paper, publishing and printing divisions.

Meanwhile, expenditure on real GDP increased by 0.5% in the first quarter. This follows the increase of 0.3% recorded in the fourth quarter of 2025.

Household final consumption expenditure (HFCE) increased by 0.1%, contributing 0.1 of a percentage point to the total growth. Positive growth rates were reported for durable, non-durable and semi-durable goods.

The main positive contributors to the increase in HFCE were expenditures on transport (0.8% and contributing 0.1 of a percentage point) and housing, water, electricity, gas and other fuels (0.9% and contributing 0.1 of a percentage point).

The negative contributors were expenditures on ‘other’; restaurants and hotels; food and non-alcoholic beverages; and alcoholic beverages, tobacco and narcotics.

Final consumption expenditure by general government increased by 0.6%, contributing 0.1 of a percentage point to the total growth. This was mainly driven by increases in purchases of goods and services and compensation of employees.

Further, gross fixed capital formation decreased by 1.1%, contributing -0.2 of a percentage point to the total growth. The negative contributors to the decrease were machinery and other equipment (-3.4% and contributing -1.4 percentage points), residential buildings (-7.2% and contributing -0.7 of a percentage point) and other assets (-1.8% and contributing -0.2 of a percentage point).

Stats SA reports that there was a R22.4-billion drawdown of inventories (seasonally adjusted and annualised), mainly driven by two industries – manufacturing and trade.

Net exports contributed positively (0.9 of a percentage point) to expenditure on GDP. Exports of goods and services increased by 0.5%, largely influenced by increased trade in mineral products; vegetable products; and prepared foodstuffs, beverages and tobacco.

Imports of goods and services decreased by 2.6%, largely influenced by decreased trade in pearls, precious and semi-precious stones and precious metals; mineral products; machinery and electrical equipment; textiles and textile articles; and animal and vegetable fats and oils.