Economics
The President Who Caused a Recession
South Africa, the continent’s most industrialized nation, is entering its second slump in a decade
Jacob Zuma addresses the National Assembly in Cape Town, South Africa., on June 01, 2017.
Photographer: Esa Alexander/The Times/Gallo Images Editorial/Getty ImagesThis article is for subscribers only.
The last time South Africa fell into recession, in 2009, it was because of the global financial crisis. This time around, economists and business executives agree, the cause is a person: the president.
Jacob Zuma’s erratic political moves are breeding policy uncertainty and reluctance to invest, helping explain why the economy of the continent’s most industrialized nation contracted for a second straight quarter in the three months through March. Finance, real estate and business services shrank for the first time since the second quarter of 2009.