ESWATINI ECONOMY REFLECTS STRONG RESURGENCE

MBABANE – In 2023, the domestic economy reflected a strong resurgence in the review period, backed by notable performance of manufacturing, mining and construction activities on the production side.

According to the Economic Review and Outlook report for the financial year (FY) 2023/24 – 2026/27, the Eswatini economy continued to reflect a strong drive of the services sector, against the pace of industrialisation. The services sector stayed the largest contributor to gross domestic product (GDP) with the share of value-add for this sector recorded at 57.2 per cent.

Growth

The report compiled by the Ministry of Economic Planning and Development highlighted that the country’s GDP growth, in real terms, rebounded from the previous year’s low base of 0.5 per cent. The domestic economy’s real GDP growth was estimated at 4.8 per cent in 2023 and recorded E49.186 billion (E84.847 billion in current prices) in monetary terms relative to an estimated real GDP of E46.915 billion (E78.390 billion in current prices). It was reported that the industry sector’s contribution (including manufacturing, construction and utilities) was estimated at 35.3 per cent, reflecting a 0.1 percentage point decline in 2023.Manufacturing alone contributed an estimated 29.6 per cent to total value added, compared to 29.9 percent in 2022. The decline in the performance of the manufacturing sector is partially attributed to high production costs, competition from imported goods, and the poor performance of the sugar industry in the recent past.  

Indicating

Likewise, agriculture activity has continued to reflect strain, as the sector’s value-add was recorded at 8.7 per cent, indicating a 0.5 percentage point decline. Primary activity overall value-add was estimated at 9.1 per cent, in the period. The economy reflects poor structural transformation, which has translated to higher unemployment and poverty rates.

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