The International Monetary Fund (IMF) lowered South Africa’s growth forecast to 0.1% in 2016 from a previous estimate of 0.6% it projected last April. The institution revealed the new forecast in a statement published on July 7.

“Growth should slow to 0.1% in 2016 before recovering a bit in 2017 (1.1%) as shocks dissipate and more power plants are completed,” IMF said.

IMF added that unemployment rate in SA, which is currently at 27% of active population, could increase in the medium term.

Also, the current account deficit could decrease slightly in 2016 before climbing to 4.75% in 2017 and 2018 while inflation should be around 6.7% this year and 5.6% in 2017.

Already suffering from a lower household consumption, power shortages, falling commodity prices and slowing Chinese demand, the South African economy is weighed by its worst drought in a century.