In-Depth Analysis
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.
We have revised our economic growth forecast for 2021 downwards from 4.5% to 3.0%, as more strict lockdowns constrain the finances of businesses and households. However, upbeat economic news from South Africa will provide some support over the short term, as the kingdom remains dependent on its neighbour for trade, Sacu receipts and remittances. Looking further ahead, delays in implementing structural reforms will hamstring economic potential while lower Sacu receipts will put pressure on the government to rein in spending. (Source: eSwatini Quarterly Update, published June 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-8.1 |
|
Consumer Price Index (% change y-o-y, avg) |
3.9 |
|
Current Account Balance (as a % of GDP) |
6.4 |
|
Real GDP (annual % change) |
-2.2 |
|
GDP per Capita, US$ |
3,441.2 |
|
Import Cover (months) |
3.44 |
|
Population, million |
1.2 |
| Total External Debt (as a % of GDP) |
20.2 |