South Africa’s economy grew by 0.8 per cent in 2018 — the fifth year running it has posted growth below two per cent — as expansion slowed in the year’s last quarter, the country’s statistics office said.
Gross domestic product expanded by 1.4 per cent during the fourth quarter on an annualised basis, compared to 2.6 per cent in the previous three months, according to statistics released on Tuesday.
Africa’s most industrialised economy has failed to grow by more than two per cent a year since 2013, and its GDP is falling on a per-capita basis as the population grows faster than the economy.
President Cyril Ramaphosa has struggled to revive activity since he replaced the stagnant and corruption-plagued rule of Jacob Zuma last year. The former trade unionist turned tycoon has pledged a “new dawn” for the economy by stabilising regulations and promoting foreign investment.
Mr Ramaphosa faces resistance from Mr Zuma’s remaining allies in the ruling African National Congress over reforms such as shoring up the battered power monopoly, Eskom, which received a nearly $5bn bailout last month to avert a default on rising debts.
Eskom’s crisis has led to the imposition of rolling blackouts in recent weeks that have throttled industry.
South Africa’s Treasury, which is battling to retain the country’s last investment-grade credit rating bestowed by Moody’s, has forecast 1.5 per cent growth this year.
