Cabinet welcomes improved GDP growth and youth employment strides

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 said the 0.8% GDP growth reflects a broad-based recovery across key sectors. 

“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 and this is confirmed through improved reported inflation figures,” the Minister said at the briefing on Cabinet's meeting on Wednesday.. 

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 said the ratings are supported by a favourable government debt structure that is mostly local currency denominated, with long maturities and strong institutions and a credible monetary policy framework. 

According to Fitch, the progress being made under government’s Operation Vulindlela phase 2 reforms focused on fixing network infrastructures (electricity, logistics, and water) 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 Fitch’s affirmation signals continued investor confidence in the country’s fiscal management and institutional strength,” the Minister said. 

Presidential Youth Employment Initiative 

Cabinet at its meeting further welcomed the latest Quarterly Progress Report of the Presidential Youth Employment Intervention (PYEI) for April to June 2025, which highlights 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, demonstrating government’s steady progress in tackling youth unemployment.

In this quarter alone, more than 234 000 opportunities were accessed by young people through the NPMN. These include work experiences, skills development programmes, and income-generating opportunities that are equipping young people to transition into the labour market.

“Cabinet expressed appreciation to all partners for their continued contributions and reaffirms government’s commitment to tackling youth unemployment through innovative and scalable interventions,” Ntshavheni said. – SAnews.gov.za