eSwatini
Landlocked eSwatini is ruled by Africa’s last absolute monarch and most of its people are dependent on subsistence agriculture. Unwarranted state spending blemishes the country’s reputation, along with its foreign investment appeal. Key macroeconomic indicators have underperformed in recent years, mainly due to the widening fiscal deficit. While disruptive political change seems certain, it does not look imminent.
eSwatini’s economic fate is intertwined with South Africa’s. Persistent economic weakness in South Africa will continue to hamper the economic potential of eSwatini, as the kingdom remains dependent on its largest neighbour for Sacu revenues and remittances, in addition to South Africa being its major market for exports. As Sacu receipts come under pressure over the medium term in line with regional economic underperformance, it will pose an additional challenge for eSwatini’s fiscal consolidation and reverse the progress made in reducing domestic arrears. (Source: eSwatini Annual Country Profile, published March 2021)
Macroeconomic Data
(2020)
Fiscal Balance (as a % of GDP) |
-6.1 |
Consumer Price Index (% change y-o-y, avg) |
3.9 |
Current Account Balance (as a % of GDP) |
9.2 |
Real GDP (annual % change) |
-2.5 |
GDP per Capita, US$ |
3,431.7 |
Import Cover (months) |
3.62 |
Population, million |
1.2 |
Total External Debt (as a % of GDP) |
20.2 |