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Economy sustains growth as GDP hits E89bn

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Economist Sanele Sibiya highlighted that the GDP results send mixed signals for businesses and households, and it may not translate into widespread domestic benefits. (Pic: SweetCrudeReports)
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MBABANE – The country’s economy has demonstrated continued resilience, with the latest data from the Central Statistical Office (CSO) revealing a gross domestic product (GDP) of E89.004 billion for 2024.

The country’s Real GDP grew by three per cent.

The annual GDP report for 2024 indicates that the country’s real GDP growth of three per cent is a notable, but slightly lower figure compared to the 3.5 per cent growth recorded in 2023.

This economic expansion was predominantly driven by the robust performance of the secondary sector, which registered a substantial growth rate of 6.6 per cent.

GDP measures economic activity and corresponds to the value of all goods and services produced within a country. The report, compiled by the National Accounts Unit of the Central Statistical Office, highlights the significance of GDP as a key measure of economic health.

The structure of Eswatini’s economy in 2024 highlights a reliance on a few key sectors. The manufacturing industry remains the powerhouse of the economy, contributing the largest share at 29.1 per cent of the total GDP.

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The figures send mixed signals – economist

MBABANE – The Domestic Product Report 2024 send mixed signals for businesses and households.

The latest annual report 2024 was met with a nuanced analysis from University of Eswatini (UNESWA) Economics Lecturer Sanele Sibiya.

He said the figures present a complex picture of the country’s economic health, with both strong points and vulnerabilities. He emphasised that the nation must capitalise on its current growth drivers to implement deep, structural reforms.

Sibiya highlighted that the GDP results send mixed signals for businesses and households. On one hand, robust performance in key industrial sectors offers clear opportunities.

 The report’s findings of strong growth in manufacturing (+7.8 per cent) and mining (+24.1 per cent), coupled with a significant 14.3 per cent expansion in exports, create a positive environment for firms tied to export markets. This outward-facing growth demonstrates the economy’s capacity to compete on a regional and international scale.

However, the economist cautioned that this positive trend is not translating to a widespread domestic benefit. On the other hand, he said: “The weak domestic demand, with household consumption rising only 0.7 per cent, means that retail, hospitality and consumer-facing industries remain under pressure.”

For individuals and families, he said, the picture is equally complex.

*Full article available in our publication.

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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