S&P downgrades South Africa's growth forecast for 2025 as economic challenges persist

S&P Global Ratings has downgraded South Africa’s economic growth forecast for 2025 following a subdued gross domestic product (GDP) print in the first quarter.

The South African economy kept its head above water in the first quarter of 2025, expanding by a marginal 0.1% compared with the fourth quarter of 2024.

Six of the 10 industries on the production (supply) side of the economy recorded negative gains, with mining and manufacturing being the biggest drags in the first quarter.

Mining weakened by 4.1%, with platinum group metals the most significant negative contributor. Coal, chromium ore, gold, copper and nickel also disappointed. Iron ore, manganese ore and diamonds recorded gains, but not enough to lift the industry into positive territory.

By Siphelele Dludla.

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