Africa-Press – Eswatini. Eswatini economy is showing cautious signs of recovery, recording modest growth in the second quarter of 2025 despite ongoing global uncertainties.
According to the latest economic bulletin from the Ministry of Economy, Planning and Development, the country’s domestic economy grew by 0.5 per cent quarter-on-quarter, though real GDP contracted by 0.3 per cent year-on-year, reflecting lingering effects of regional and global economic pressures.
Economist Sanele Sibiya, speaking on Eswatini TV’s Kusile Breakfast Show on September 2, 2025, explained the apparent contradiction “Quarter-on-quarter growth indicates a slight improvement compared to the first quarter of the year, driven by seasonal activities, recovery in certain manufacturing sectors, and stronger trade flows. Meanwhile, the year-on-year contraction shows that the economy has not yet fully regained the activity levels of the same period last year due to structural challenges and subdued external demand.”
Sibiya highlighted that the service sector continues to drive growth, offsetting contractions in some primary and secondary sectors. “This suggests a gradual transition towards a service-led economy, which is promising for long-term stability,” he said.
He also noted that strategic partnerships with international tech companies, such as Google and Microsoft, could further bolster domestic services, support the trade balance, and reduce reliance on imports.
Inflation trends also provide a positive outlook. Overall inflation fell from 4.0 per cent in Q1 to 3.1 per cent in Q2, with the 2025 forecast revised down to 3.7 per cent from 4.8 per cent, signalling a period of disinflation. Sibiya emphasized that easing global supply shocks, coupled with prudent central bank policies, will help maintain inflation within manageable levels.
He further pointed to Eswatini’s economic interconnectedness with regional partners, particularly South Africa. “Shifts in South Africa’s economy inevitably impact Eswatini, but the resilience we are seeing in key sectors offers optimism for growth in the coming quarters,” Sibiya concluded.
Overall, despite structural challenges and global uncertainties, Swatini’s economy is showing signs of stability, driven by service sector expansion and supportive fiscal and trade measures.
Source: Eswatini Positive News – News Website
For More News And Analysis About Eswatini Follow Africa-Press
