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
Deposits grow 2.7%, supporting lending recovery Average loan sizes small, credit risk persists ...
Oil majors expand offshore exploration from Senegal to Angola Gulf of Guinea accounts for about 1...
Rwanda, partners break ground on $2 billion Kigali Innovation City Smart city targets ...
MTN is considering buying back telecom towers it sold years ago, signalling that control of infras...
Ziidi Trader enables NSE share trading via M-Pesa M-Pesa revenue rose 15.2% to 161.1 billio...
Ericsson and Nigeria’s government launched the “Connect NextGen Hackathon.” The four-month program targets 5G, AI, IoT, cloud and sustainability. Top...
CMA CGM launched its first regional Africa office in Abidjan. The hub will oversee pricing, equipment management and customer service. The move comes...
DRC Gold Trading opened a Lubumbashi branch to channel artisanal gold. First official shipment from Haut-Katanga topped 20 kg, worth over $2...
ERG signed an MoU with EGC to supervise artisanal cobalt mining. EGC holds a state-backed monopoly on buying and exporting artisanal cobalt. Exports...
Benin is guest of honor at the 2026 African Book Fair in Paris. More than 400 authors and 150 publishers from 20 countries are expected. The spotlight...
had relaunched the International Festival of Saharan Cultures (FICSA) in Amdjarass after a seven-year hiatus. Niger participates as guest of honor,...