Africa-Press – Eswatini. Eswatini’s Real GDP is projected to grow by 4.9 per cent in 2024 and this depicts unchanged projections from previous ones.
According to the Minister of Economic Planning and Development Dr Tambo Gina, the outer years 2025 and 2026, are projected to average 3.4 per cent, which is an upward revision from the previously projected average of 2.5 per cent. According to the latest projections (January 2024 review), the Eswatini Gross Domestic Product (GDP) is estimated to have expanded by 4.8 per cent in 2023, reflecting a slight upward revision from the previous projection of 4.7 per cent (in September 2023).
The increase is accounted for by a strong performance from the tertiary sector, which counteracted a slowdown in the secondary sector and a poor performance in the primary sector. The minister stated that as previously anticipated, the second half of 2023 marked the commencement of Phase I of the Mkhondvo-Ngwavuma Water Augmentation Programme (MNWAP), which includes the construction of the Mpakeni dam estimated at E2.629 billion. “This is expected to be one of the main drivers of growth for the short-to-medium term, coupled with other developments within other sectors of the economy,” said the minister. Dr Gina highlighted that Eswatini’s economy depicted a recovery in 2023 from the low growth experienced in 2022. Real GDP grew by 3.0 per cent quarter-on-quarter and 7.7 per cent on a year-on-year basis (seasonally adjusted) in the third quarter of 2023.
Currencies
Furthermore, the country’s exports of goods, on the other hand, grew by 19.2 per cent in 2023, compared to 6.3 per cent in 2022, largely benefitting from a 12 per cent depreciation of local currency against major trading currencies. On price developments, overall inflation increased to 5.0 per cent in 2023 relative to 4.8 per cent in the previous year. The discount and prime lending rates were unchanged at 7.50 per cent and 11.0 per cent respectively. Credit to the private sector increased by 2.9 per cent in real terms in 2023 down from 7.0 per cent in 2022. Gross Official Reserves rose by 15.2 per cent in 2023 compared to a decline of 15.4 per cent in 2022. The recovery in reserve position was largely buoyed by a rebound in the Southern African Customs Union (SACU) receipts, which increased from E5.82 billion in 2022/23 fiscal year to E11.75 billion in 2023/24. The country’s gross official reserves were sufficient to cover 2.8 months of import cover as of December 2023, falling below the international benchmark of 3.0 months of import cover.
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