THE South African economy grew at its slowest pace in nearly five years in the first quarter of the year as strikes weighed on output and due to slower consumer spending‚ London research firm Capital Economics said.
This follows disappointing economic data such as mining and manufacturing data.
Capital Economics Africa economist Shilan Shah said yesterday GDP growth had slumped to a seasonally adjusted and annualised 0.2% in the first quarter from 3.8% in the fourth quarter of last year.
This meant the economy grew at its slowest quarterly pace since the second quarter of 2009, in the recession.
Statistics SA is scheduled to release the first-quarter GDP data on May 27.
Capital Economics predicted the local economy would grow by 2.3% this year but said the weak first-quarter economic growth meant this forecast could be lower. – BDlive