Home Business IMF predicts slower growth
Business

IMF predicts slower growth

Share
An IMF team, led by Xiangming Li, visited Eswatini from July 23 to August 5, 2026, where it held discussions with government officials, the Central Bank of Eswatini and other stakeholders. (File pic)
An IMF team, led by Xiangming Li, visited Eswatini from July 23 to August 5, 2026, where it held discussions with government officials, the Central Bank of Eswatini and other stakeholders. (File pic)
Share

MBABANE – The International Monetary Fund (IMF) has projected that Eswatini’s economic growth will slow in 2026.

This is reportedly because the country continues to grapple with rising fuel costs, weaker global demand, tighter financing conditions, weather-related disruptions and a slowdown in investment activity.

The projection follows the IMF’s 2026 Article IV Consultation mission, which assessed the country’s economic performance and policy direction.  An IMF team, led by Xiangming Li, visited Eswatini from July 23 to August 5, 2026, where it held discussions with government officials, the Central Bank of Eswatini (CBE) and other stakeholders. At the conclusion of the mission, Li said Eswatini’s economy recorded strong growth in 2025, but warned that a more challenging global and domestic environment would weigh on performance this year.

According to the IMF, Eswatini’s real gross domestic product (GDP) growth accelerated to 4.9 per cent in 2025, driven by major public and private sector investment projects.

However, despite the stronger economic expansion, unemployment remained persistently high at 33.5 per cent, highlighting the limited translation of growth into job creation.

The IMF expects growth to moderate during 2026 due to several headwinds, including higher international fuel prices, weaker external demand from trading partners, tighter financial conditions, climate-related disruptions and easing investment activity after the completion of several large projects.

While the growth outlook remains positive, the fund cautioned that the pace of expansion would be significantly lower than that experienced last year.

 The IMF noted that inflation eased considerably throughout 2025 and continued declining during the first half of 2026 before edging up to 2.6 per cent in June.

It attributed the anticipated increase in inflation during the remainder of the year mainly to rising  fuel prices, which are expected to filter through transport, production and consumer costs.

Although inflation remains relatively low compared to historical levels, the fund warned that imported inflationary pressures could become more pronounced should global geopolitical tensions intensify.

Share
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.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

MaMkhize’s Bull faces police test

MBABANE – Shauwn ‘MaMkhize’ Mkhize’s Mbabane Highlanders AM face their sternest MTN Premier League test yet when they meet Royal Leopard at Mayaluka...

Eswatini’s fastest lady honoured at TUT sports awards

MBABANE – Eswatini's fastest lady Bongiwe 'Smolly' Mahlalela has been crowned Sportswoman of the Year at the prestigious Tshwane University of Technology Sports...

Standard Bank brings back Instant Money

MBABANE - Standard Bank Eswatini is bringing back its Instant Money service, four years after replacing it with Unayo, with customers now being...

Eswatini now imports building blocks

MBABANE – The construction industry and the entire economy of the country are under siege. It has emerged that Eswatini has been importing...

Bunye Betfu Co-op’s E19m missing

MANZINI – Bunye Betfu Buhle Betfu Savings and Credit Co-operative a scheme for civil servants, is in tatters. The scheme, one of the...

Related Articles

Mvuselelo Fakudze appointed new STANLIB Board Chair

MBABANE - Mvuselelo Fakudze has been appointed as the new Board Chairman...

Leather sector could unlock E943.8m value

MBABANE - Eswatini’s leather sector has the potential to grow the value...

IMF warns borrowing costs worsen debt dynamics

MBABANE - Eswatini’s public debt position is coming under increasing pressure as...

Central Bank raises E1.877bn through government bonds

MBABANE - The Central Bank of Eswatini raised E1.877 billion through Government...