PRETORIA, March 5 (Reuters) – South Africa’s economy grew 0.1% in the fourth quarter of 2023 in quarter-on-quarter seasonally adjusted terms, narrowly avoiding a technical recession, statistics agency data showed on Tuesday.

The economy grew 0.6% in 2023, said Statistics South Africa.

The fourth quarter growth rate was slightly lower than the 0.3% growth economists polled by Reuters had predicted ZAGDPN=ECI.

Tuesday’s data is the last gross domestic product (GDP) release before national and provincial elections in May.

Africa’s most industrialised economy has stagnated over the last decade, with GDP averaging 0.8% since 2012.

Inefficiencies at state-owned power utility Eskom and port and freight rail company Transnet are one reason why growth has been so weak.

A cost-of-living crisis that has squeezed consumer spending has also dented growth.

A technical recession is defined as two consecutive quarters of contracting economic output. The economy shrunk 0.2% in the third quarter of 2023.

(Reporting by Kopano Gumbi and Sfundo Parakozov; Writing by Nellie Peyton; Editing by Alexander Winning)