Public Management

Eswatini: IMF sees growth rising to 3.2% and inflation stabilizing in FY2022/2023

Eswatini: IMF sees growth rising to 3.2% and inflation stabilizing in FY2022/2023
Friday, 10 March 2023 15:19

The outlook for the Eswatini economy is positive in the near term but some of the Kingdom's vulnerabilities remain and could constrain economic growth. Therefore, the IMF believes that measures are needed to strengthen growth. 

The IMF expects Eswatini's economic growth to reach 3.2% and its inflation to stabilize this year. According to an end-of-mission release published by the multilateral institution today, the growth will be supported by agricultural production, manufacturing, and increased government spending. Compared to 2022, this forecast represents an increase of 2.8 points. Indeed, GDP growth stagnated in 2022 at 0.4 percent, mainly due to "the continued dampening effect from civil unrest, government payment arrears, slowing growth in South Africa, and heavier than normal rainfall and industrial action on the sugar sector."

Inflation is expected to stabilize at around 5 percent after reaching 5.6 percent in 2022, due to rising food and transport prices. While increased government spending and lower Southern African Customs Union (SACU) revenues are expected to widen the government's budget deficit to 5.4 percent of GDP at the end of FY2022-2023, the deficit is expected to narrow in the next fiscal year (2023-2024).

SACU revenue transfers are expected to roughly double in FY23-24, facilitating a significant reduction in the fiscal deficit and a modest reduction in the ratio of public debt to GDP,”  the release informs. 

Despite "considerable progress," the Fund says Eswatini's macroeconomic and fiscal imbalances remain a source of vulnerability for the Kingdom. The risks of debt distress, rising domestic arrears, and declining foreign exchange reserves make the country vulnerable to further shocks.

To improve the economy's resilience to these vulnerabilities, the Fund recommends the implementation of several measures. Among other things, the authorities are encouraged to continue their adjustment program to ensure fiscal sustainability and rebuild external buffers. Promoting private investment and strengthening competitiveness will be key to boosting growth and reducing unemployment, the IMF believes.

Jean-Marc Gogbeu

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0.6% in May, bolstered by a decline in food costs. •...
• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its main policy rate to 3.25% following a sharp drop in...
• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 million to $1 billion in annual market...
Sixty-five percent of banks in sub-Saharan Africa view cyber risks as a major hurdle to digitalization, according to the European Investment Bank. In...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
03

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
04

• Kenyan President William Ruto signs strategic partnership with UK Prime Minister Keir Starmer to b...

William Ruto in London: New Agreement Aims to Double Kenya-UK Trade by 2030
05

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.