South Africa’s economy posted its strongest growth in two years during the second quarter, surpassing economists’ expectations. GDP expanded 0.8% from the previous quarter, exceeding forecasts of 0.6%. This encouraging rebound was largely fueled by revitalized activity in the manufacturing and mining sectors, signaling a positive shift for the continent’s most industrialized economy. The performance prompted Goldman Sachs to revise its 2025 growth forecast upward to 1.2%, while Capital Economics projected continued modest expansion as lower interest rates and easing structural hurdles take effect. Still, challenges loom ahead. Washington’s recent imposition of a steep 30% tariff on South African goods—the highest in sub-Saharan Africa—could dampen momentum in the coming months.
SEMAFOR
