South Africa economic growth slows to 0.9%
South Africa's economic growth slowed sharply in the first three months of the year.
According to official figures, between January and March, the country's economy grew by just 0.9%, compared with the previous quarter. The figure has raised concerns that Africa's largest economy is struggling to regain momentum. It grew by 2.5% last year. Compared with the same three months in 2012, South Africa's economy grew by 1.9%. Much of the slowdown in growth is being attributed to closures for maintenance in several crucial industries, notably the petroleum sector. Nicky Weimar, senior economist at Nedbank, said: "To put it mildly, it's a very disappointing number." "It's a very tricky situation for the monetary policy committee [of the central bank] - growth is obviously a lot weaker than they thought," he added. Last week, South Africa's Reserve Bank kept interest rates at 5%, saying it was "increasingly concerned" about the economy's "deteriorating outlook". Inflation is forecast to rise later in the year. It is currently running at 5.9%, just below the government's target of 6%. Upward pressure is being put on prices by the weakness of the rand, which is at its lowest level in four years. South Africa's economy has been struggling since a recession in 2009. Violent strikes in the mining sector last year saw output plunge.