Pretoria: Cabinet has welcomed the latest Gross Domestic Product (GDP) figures, which show that the economy has grown 0.8% in the second quarter of 2025, an improvement from the 0.1% growth in the first quarter. Speaking during a media briefing in Pretoria on Thursday, Minister in the Presidency, Khumbudzo Ntshavheni, highlighted the broad-based recovery across key sectors contributing to this growth.
According to South African Government News Agency, eight industries recorded growth in the second quarter, with key sectors like manufacturing, mining, and trade returning to growth territory. Rising household consumption also reflects an improvement in disposable income, confirmed through improved reported inflation figures. The Cabinet further welcomed Fitch’s decision to affirm South Africa’s long-term foreign and local currency debt ratings and maintain the stable outlook.
The Minister stated that the ratings are supported by a favourable government debt structure, mostly denominated in local currency, with long maturities, strong institutions, and a credible monetary policy framework. According to Fitch, progress under the government’s Operation Vulindlela phase 2 reforms focused on fixing network infrastructures such as electricity, logistics, and water. These reforms have alleviated load shedding and ended the decline in freight volume transported, contributing to Fitch’s forecast of a modest increase in real GDP growth. The Minister emphasized that Fitch’s affirmation signals continued investor confidence in the country’s fiscal management and institutional strength.
In addition, the Cabinet welcomed the latest Quarterly Progress Report of the Presidential Youth Employment Intervention (PYEI) for April to June 2025, highlighting significant strides in creating pathways to earning for young South Africans. To date, more than 5.64 million young people have registered on the National Pathway Management Network (NPMN), surpassing the initial target of 5 million.
Over 1.91 million young people have accessed temporary earning opportunities, reflecting the government’s steady progress in addressing youth unemployment. In this quarter alone, more than 234,000 opportunities were accessed by young people through the NPMN. These opportunities include work experiences, skills development programs, and income-generating activities that are equipping young people to transition into the labour market. Minister Ntshavheni expressed appreciation to all partners for their continued contributions and reaffirmed the government’s commitment to tackling youth unemployment through innovative and scalable interventions.