South African economy crashes below 10 year mark

The impact of blackouts and power cuts are now becoming very apparent on the South African economy.

Latest gross domestic data shows that South Africa has just witnessed its worst economic growth in the last 10 years.

Data compiled by Bloomberg shows that the annualized decline in gross domestic product was 3.2% in the first quarter from a 1.4% expansion in the prior three months, Statistics South Africa said Tuesday.

That compared with a median estimate for a contraction of 1.6%. South Africa’s economy is the second largest and most advanced in Africa. Quarters of sluggish growth from various key sectors has weakened the country’s economy.