Africa-Press – Eswatini. Economic optimism prevails in the country as debt burden eases with public debt-to-GDP ratio poised to touch 38 per cent in 2024, according to the African Development Bank (AfDB).
In its Eswatini Economic outlook, the financier highlighted that the country’s public debt-to-GDP ratio is projected to fall steadily, reaching 38 per cent, down from a revised projection of 41 per cent in 2023.
The report underscores the significance of this positive trend for the nation’s financial health, indicating a path towards greater fiscal stability.
A lower debt burden, as the report notes, translates to increased fiscal flexibility, enabling the government to prioritise investments in crucial sectors such as infrastructure, healthcare, and education.
It noted that improved creditworthiness, a direct consequence of the declining debt-to-GDP ratio, serves as a magnet for foreign investors, injecting valuable capital into the economy and fuelling a positive feedback loop of increased confidence and sustained growth
Deficit
The report further emphasizes the anticipated improvement in the nation’s finances, highlighting a projected decline in the fiscal deficit from 5.1 per cent in 2023 to 3 per cent in 2024 due to a robust resurgence of income from the Southern African Customs Union (SACU).
The financer’s positive outlook hinges on a surge in income from the SACU, leading to a smaller gap between its income and expenses.
It therefore indicates that this, in turn, would pave the way for stronger economic stability and potentially more resources for government initiatives.
According to AfDB Eswatini Economic Outlook, in 2023, GDP growth was projected to be maintained at 3.5 per cent, supported by a rebound in domestic demand and rejuvenation of consumption and investment spending.
Inflation was projected to remain elevated, averaging 5.3 per cent over 2023–24, further attributed to persistent global inflation and a weaker rand.
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