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Eswatini economy expands 6.5% in Q2

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MBABANE – Eswatini’s real gross domestic product (GDP) grew by 6.5 per cent in the second quarter of 2026, signalling stronger economic activity compared to the same period last year.

The latest Quarterly GDP Bulletin released by the Central Statistical Office (CSO) shows that the seasonally adjusted year-on-year growth rate accelerated from 4.1 per cent recorded in the second quarter of 2025 to 6.5 per cent in the second quarter of 2026.

The performance was broad-based across the economy, with the primary, secondary and tertiary sectors all recording year-on-year growth during the quarter.

On a quarter-to-quarter basis, however, seasonally adjusted GDP growth moderated to 0.7 per cent in the second quarter, following growth of 2.6 per cent in the first quarter of 2026.

The primary sector recorded growth of 9.3 per cent year-on-year in the second quarter and accounted for 8.9 per cent of total industries.

The CSO attributed the sector’s performance mainly to growth in crops, forestry and mining, which expanded by 6.5 per cent, 6.9 per cent and 24.3 per cent, respectively.

Mining was therefore among the fastest-growing activities during the quarter, providing a significant contribution to the primary sector’s expansion.

The secondary sector recorded the strongest overall sectoral growth, expanding by 11.6 per cent year-on-year in the second quarter.

The sector contributes 35.2 per cent to total industries, according to the CSO.

Manufacturing increased by 14.0 per cent, while electricity supply grew by 21.8 per cent. The CSO identified these two activities as the main drivers of the secondary sector’s performance during the quarter.

The manufacturing performance is particularly significant given the sector’s contribution to overall economic activity. The industry accounted for 28.1 per cent of GDP in the second quarter, according to the latest industry-share estimates.

The tertiary sector, which remains the largest component of economic activity, grew by 4.1 per cent year-on-year during the second quarter.

The sector accounts for 55.8 per cent of total industries, with its performance mainly supported by accommodation, information and communication, and professional services.

Accommodation grew by 19.6 per cent, while information and communication recorded a substantial 55.6 per cent expansion. Professional services increased by 8.1 per cent.

The latest figures show that information and communication was the fastest-growing activity among the major service industries, continuing its strong expansion after recording growth of 62.6 per cent in the first quarter of 2026.

At current prices, GDP increased to E24.044 billion in the second quarter of 2026, compared to E22.496 billion in the corresponding quarter of 2025.

The seasonally adjusted GDP at current prices stood at E25.411 billion in the second quarter, compared to E23.838 billion a year earlier.

At constant prices, which are used to measure real economic growth, GDP stood at E18.721 billion in the second quarter, up from E17.505 billion in the same quarter of 2025.

The seasonally adjusted constant-price GDP increased from E18.576 billion in the second quarter of 2025 to E19.791 billion in the latest quarter.

The CSO said the quarterly GDP estimates had been benchmarked using updated rebased annual GDP figures. The previous base year was 2011, while the updated base year is now 2019.

The statistical agency said the rebasing was intended to align GDP estimates with current economic conditions and structural changes in the economy.

The latest estimates were compiled using the 2008 System of National Accounts and the International Standard Industrial Classification of Economic Activities, Revision 4.

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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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