Best news for South Africa’s economy in four years

South Africa’s economy expanded for a fourth straight quarter, extending the longest growth streak since 2021 when the nation was recovering from pandemic-era lockdowns.

Gross domestic product increased 0.5% in the three months through September, compared with revised growth of 0.9% in the prior quarter, Statistics South Africa said in a report released in the capital, Pretoria, on Tuesday. That matched the median estimate of 11 economists in a Bloomberg survey.

Growth in the quarter was largely led by the mining and agriculture sectors, which expanded 2.3% and 1.1%, respectively.

Gross fixed capital formation reversed its decline, rising 1.6% in the quarter. That signals businesses are beginning to invest in machinery, buildings and other fixed assets, which may help lift the productive capacity of the economy. 

The reading adds to a recent spate of positive news around Africa’s most industrialized economy. Last month, Finance Minister Enoch Godongwana delivered a mid-term budget statement that showed better revenue collection, while S&P Global Ratings lifted the nation’s credit rating for the first time in two decades.

Compared with the same period last year, the economy expanded 2.1% in the third quarter, up from a revised 0.9% in the prior three months. That was quicker than the 1.8% growth expected by six economists surveyed by Bloomberg. 

Over the nine months through September, an early indicator of where full-year growth may land, GDP expanded 1.2%.