WRAPUP 1-S.Africa growth to slow, but don't panic-Mboweni

(Combines Mboweni, Manuel and Eskom stories)

By Gordon Bell

PRETORIA, March 19 (Reuters) - South Africa's economy will slow in 2008 as global growth subsides but there is no cause for alarm, central bank Governor Tito Mboweni said on Wednesday, dismissing concerns of a sharp downturn.

Africa's biggest economy expanded by 5.1 percent last year, but a chronic power crisis, easing consumer spending and slower world growth is likely to reduce growth this year.

"It is very clear there is a slowdown in the South African economy ... but there should be no cause for alarm," Mboweni told reporters at the release of the central bank's March quarterly bulletin.

Echoing his comments, Finance Minister Trevor Manuel later told parliament he was confident growth would meet the Treasury's four percent forecast, despite increasing global fallout from the U.S. subprime crisis.

The global economy was "more battered and worn" than at the time of the prediction. However, the country's monetary and prudent fiscal policies would help cushion any blow.

"The world economy is taking strain but our shock absorbers are helping to cushion against the worst effects of this crisis. We have what it takes to ride out the storm," he said.

Business, manufacturing and retail confidence indicators released over the past week all slumped to multi-year lows, invoking fears of a slump.