Times Of Swaziland: SWAZILAND’S WEAK  ECONOMIC GROWTH

SWAZILAND’S WEAK  ECONOMIC GROWTH
================================================================================
BY KWANELE DHLADHLA  on 14/03/2018 01:18:00


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.