The Eastern Cape economy experienced a modest growth of 0.6% in 2025, rebounding from a contraction in the previous year. However, this growth rate falls short of the national average of 0.9%. The province's economic performance was also overshadowed by other major provinces, with the Western Cape recording the highest growth at 1.4%, followed by Gauteng at 1.1%. These figures are part of Statistics SA's revised national accounts, which have been updated with a new base year of 2022.
The revised GDP estimates have led to an increase in the estimated size of South Africa's economy. The rebasing and benchmarking process incorporated more recent and detailed information about economic activity, resulting in a 5.3% upward revision of the country's 2025 GDP, from R7,642 billion to R8,044 billion. This update provides a more accurate picture of the economy's size and composition. The Eastern Cape's contribution to the national GDP remained steady at 7.8% in 2025, unchanged from the previous year.
The revised figures offer insights into the structure of the Eastern Cape economy. At current prices, personal services emerged as the largest contributor, accounting for 24.4% of the provincial GDP in 2025, slightly up from 24.3% in 2024. Finance, real estate, and business services contributed 16.7%, down from 17.1% in the previous year. Meanwhile, wholesale and retail trade, hotels, and restaurants increased its share to 14.4% from 14.1%. These sectors highlight the significance of services to the provincial economy.
The manufacturing sector played a notable role in the Eastern Cape economy, accounting for 11.4% of provincial GDP in 2025, down from 11.7% in 2024. Despite this slight decline, manufacturing remained a substantial contributor to the economy. The combined share of personal services, finance and business services, and trade exceeded half of the provincial GDP in 2025, underscoring the dominance of the services sector.
It is essential to note that the percentages represent the relative size of industries in the economy, rather than their growth rates. These figures are calculated at current prices and should not be interpreted as real growth rates. Statistics SA cautions that the recent provincial estimates are subject to revision, emphasizing the need for ongoing monitoring and analysis.
The updated series provides a new benchmark for assessing the performance and changing structure of provincial economies. This revised data will enable policymakers and stakeholders to make more informed decisions about economic development and resource allocation. By understanding the composition and growth patterns of provincial economies, targeted strategies can be developed to promote sustainable economic growth and development.
The release of these revised GDP figures marks a significant milestone in the ongoing effort to improve the accuracy and reliability of economic data in South Africa. By incorporating more recent and detailed information, Statistics SA has provided a more comprehensive picture of the country's economic landscape. This updated data will be essential for guiding economic policy and decision-making in the years to come.
Key points
- The Eastern Cape economy grew 0.6% in 2025, below the national rate of 0.9%.
- Personal services was the largest contributor to the Eastern Cape economy, accounting for 24.4% of provincial GDP in 2025.
- The revised GDP estimates led to a 5.3% upward revision of the country's 2025 GDP, from R7,642 billion to R8,044 billion.
