SWAZILAND’S WEAK ECONOMIC GROWTH

 MBABANE – Tough times lie ahead for the Swazi economy this year.   The Central Bank of Swaziland CBS has projected that economic growth is projected to be weaker in 2018, but is expected to pick up in the medium term.

“Real Growth Domestic Product (GDP) is projected to grow at 1.3 per cent, which is lower than the initial projection of 2.8 per cent. This downward update for the 2018 outlook is mainly due to slower anticipated growth for the secondary and tertiary sector,” said.

It should, however, be mentioned that Swaziland’s economic growth whose real GDP was estimated to have increased by 1.9 per cent in 2017, showed an upward revision from the earlier projection of 1.0 per cent. CBS said the improvement in economic performance (relative to the previous projection) was primarily a result of better output in the tertiary sector, which grew more than expected.

It was reported that the agricultural sector recorded a 0.7 per cent growth in 2017, indicating a recovery from the drought.
Sugarcane production, which was estimated to recover slightly in 2017 before recovering fully in 2018, recorded a growth of seven per cent in 2017 and nine per cent in 2018 from a previous projection of three per cent and 19 per cent in 2017 and 2018 respectively.
The secondary sector was estimated to have increased by 0.7 per cent in 2017 while a contraction of -0.2 per cent in 2018 is expected.
In 2017, the sector benefitted from the recovery in the primary sector, especially in the sugar industry.

“The re-admission of the country into the AGOA market is expected to bring a positive turnout in economic activity especially towards the manufacturing sector. Activity in the construction sector is expected to take a hit due to worsening government fiscal challenges, which will hinder continued implementation of (government funded) capital project,” said CBS.

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