South Africa Cuts GDP Growth Forecast to 2% as Blackouts Weigh

South Africa’s government cut its economic growth forecasts for the next two years due to power shortages.

The estimate for 2015 was lowered to 2 percent from 2.5 percent, while the projection for 2016 was reduced to 2.4 percent from 2.8 percent, Finance Minister Nhlanhla Nene said in his budget speech in Cape Town. Further deterioration in electricity availability could slow growth to 1 percent in 2015, the National Treasury said.