In-Depth Analysis
eSwatini
The kingdom is a small, mountainous and landlocked country, ruled by Africa’s last absolute monarch. The quasi-enclave is characterised by multidimensional poverty, high inequality, and widespread unemployment. Social instability has been on the rise, while the macroeconomy has underperformed amid a widening fiscal deficit, weak public financial management, inadequate economic diversification, structural impediments, and a reliance on fluctuating Sacu revenues.
While eSwatini’s economy recovered during the first half of 2021 on base effects following the dismal performance in 2020 when the Covid-19 pandemic and related lockdown restrictions disrupted economic activity, it is not out of the doldrums yet. The quasi-enclave faces a number of economic and socio-political challenges, of which most are structural in nature. These challenges are not only likely to have suppressed economic growth during the latter half of the year, but will also weigh on future performance. The country will need to considerably improve the environment for the private sector to flourish if it is to achieve the targeted fiscal consolidation in a manner that enhances economic growth, development and welfare. (Source: eSwatini Quarterly Update, published December 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-6.8 |
|
Consumer Price Index (% change y-o-y, avg) |
3.9 |
|
Current Account Balance (as a % of GDP) |
6.4 |
|
Real GDP (annual % change) |
-1.6 |
|
GDP per Capita, US$ |
3,419.8 |
|
Import Cover (months) |
3.86 |
|
Population, million |
1.2 |
| Total External Debt (as a % of GDP) |
19.3 |