South Africa’s economy grew by a sluggish 0.6% in 2024, slightly down from the 0.7% growth recorded the previous year, according to data released on Tuesday by the national statistics agency.
Gross domestic product (GDP) expanded by 0.6% in the fourth quarter of 2024, marking a modest recovery after a revised contraction of 0.1% in the third quarter.
Agriculture, which had suffered a steep 29% decline in the third quarter, rebounded in the final months of the year, helping to lift overall economic output. The recovery was primarily driven by increased activity in large-scale crop production, the agency reported.
The finance, real estate, and services sector was the second-largest contributor to economic growth in the last quarter, adding 0.3 percentage points to the overall GDP rise. However, other sectors, including transportation and industry, continued to weigh on the country’s economic performance. Despite some optimism for 2025, South Africa’s economy remains weak, struggling to reach the growth levels needed to generate jobs.
The World Bank has previously warned that even a 2% GDP growth rate would be insufficient to meaningfully reduce poverty and unemployment, which remains above 31%.
