• Version
• Download 2
• File Size 166.75 KB
• File Count 1
• Create Date September 9, 2025
• Last Updated September 9, 2025

Gross Fixed Capital Formation 2nd Quarter 2025

Against a stronger than expected GDP increase of 0.8 percent q-q in Q2, following the 0.1 percent increase in Q1, fixed investment and investment in construction continued to decline. South Africa’s Gross Fixed Capital Formation (GFCF) declined by 3.0 percent year-on-year (real terms, non seasonally annualised adjusted)  in the second quarter of 2025, marking the seventh consecutive quarter of contraction. Private sector investment dropped by 0.3 percent, with a steep 20.2 percent y-y decline in investment by Public Corporations and a 3.2 percent decline by General Government.  The poor performance in investment, resulted in the contribution of investment to GDP falling to 13.5 percent, from 13.8 percent in Q1, the lowest level in the past 24 years (2001). Construction investment fell across all major segments, with residential investment declining the most at 12.1 percent, followed by a 8.4 percent y-y contraction in investment in Non-Residential Buildings and a 0.3 percent contraction in Construction Works. Overall investment in construction fell by 5.7 percent y-y, and has been in a steady contraction for the past 9 quarters, following a brief modest recovery in 2023.

Download the latest update here.

Attached Files