South Africa could see zero economic growth this year, the International Monetary Fund (IMF) warned on Wednesday, attributing this stagnation to the electricity crisis that has been causing regular cuts for months.

In January, South Africa's central bank announced a Gross Domestic Product (GDP) growth forecast of 0.3% for this year, compared to 2% in 2022.

The IMF's conclusions following a mission to the country indicate, however, that the short-term outlook has deteriorated and "real GDP growth is expected to decelerate sharply to 0.1% in 2023, mainly due to a significant increase in the intensity of power cuts".

"South Africa's economic and social challenges are mounting, posing a risk of stagnation in the midst of an unprecedented energy crisis," the IMF warned in a statement. (News)