South africa’s economic shock

South Africa’s economic growth has hit a 6 year low, according to official figures…

The slowdown has been particularly acute in the first three months of 2008, with a mere 2.1% growth recorded, down over 3% from the 5.3% growth recorded in the final quarter of 2007.

Joe de Beer, executive manager of national accounts at Stats SA explained: "There is definitely a slowdown in the economy. The two industries that constrained growth were mining and quarrying and manufacturing, and while manufacturing grew by 8.2% in the last quarter of 2007, in the first quarter of this year it slipped by 1%.

BBC analyst Caroline Hawley added: “The latest wave of anti-immigrant violence has had no clear impact on the economy to date, but their effects may yet be felt.  The attacks have made the tourism industry nervous.  Large mining companies are also concerned because they rely on migrant labour”.