Growth reached 4.9 percent in 2023, driven by services, manufacturing, and high transfers from the Southern African Customs Union (SACU). The latter helped move the external current account to a surplus of 2.2 percent of GDP. Inflation averaged 4.9 percent in 2023 and moderated to 4.2 percent in July 2024. The fiscal deficit is estimated to have narrowed to 1.5 percent of GDP in FY23/24; however, domestic payment arrears persisted. Public debt is moderate, at 38.5 percent of GDP. Widening of the policy rate differential between the Central Bank of Eswatini and the South African Reserve Bank to 75 bps in July 2023 has encouraged capital outflows, and official reserves at end-2023 covered only about 2.2 months of imports.
Organizations mentioned
- DOI
- https://doi.org/10.5089/9798400289606.002
- ISBN
- 9798400289606
- ISSN
- 1934-7685
- Issue
- 304
- Pages
- 66
- Published in
- United States of America
- Series
- Country Report No. 2024/304
- Stock No
- 1SWZEA2024001
- Volume
- 2024
Table of Contents
- Context and Background 11
- Recent DevelopmentS 11
- Outlook and Risks 14
- Authorities’ Views 15
- Policy DiscussioNS 16
- A. Ensure Long-Term Fiscal Sustainability While Supporting Growth 16
- Authorities’ Views 19
- B. Set Monetary Policy to Safeguard Foreign Reserves and Support the Peg 19
- Authorities’ Views 20
- C. The Financial Sector Stability Review (FSSR) Sets the Roadmap 21
- Authorities’ Views 21
- D. Raising Potential Growth Through Structural Reforms 22
- Authorities’ Views 23
- E. Governance, RFI Commitments, Capacity Development, and Data Issues 23
- Authorities’ Views 25
- Staff Appraisal 25
- Context 56
- CD Strategy 56
- Key Overall CD Priorities Going Forward 57
- Main Risks and Mitigation 58
- Kingdom of Eswatini - 2024- Article IV Consultation - Press Release - Bundle.pdf -1
- FOR IMMEDIATE RELEASE 1
- Eswatini - 2024 Article IV Consultation - Informational Annex - Bundle.pdf -1
- Relations with the IMF 62
- Exchange Rate Arrangements. The currency of Eswatini is the Eswatini lilangeni (plural: emalangeni). The de jure and de facto exchange rate arrangements are a conventional pegged arrangement vis-à-vis the South African rand, which is also legal tender... 62
- Relations with OTHER INTERNATIONAL FINANCIAL INSTITUTIONS 66