South African economic growth could triple this year, Absa says

South Africa looks set for much better growth in 2025 thanks to increased spending and investment, according to analysts at Absa Group, though a cooling of relations with the US may dim the outlook.

Africa’s most industrialized economy could expand by 2.1% this year, analysts at the Johannesburg-based lender said on Tuesday. That compares with the 1.7% expansion forecast by the central bank, up from 0.7% in 2024.

“Growth should be a lot better this year,” Absa economist Miyelani Maluleke told a media round table. Milder inflation and lower borrowing costs are boosting income, he said, while investment should rebound from the depressed levels of recent years. “Cyclical support factors and a stronger consumer environment are positive.”

South Africa’s economy has grown by less than 1% on average for the last decade, handicapped by mismanagement and corruption at state-run entities that snarled vital infrastructure and caused frequent power cuts.

Load-shedding,