Eswatini’s Economy Surges 5.7% as Inflation Slides to 2%

Eswatini’s economy grew 5.7% in the latest quarter and inflation dropped to 2%, marking the first time since 2018 that growth and price stability have aligned.

That figure comes from the national statistics office’s release on Thursday, which showed the real GDP increase outpacing the region’s average of 3.2%.

What drove the surge?

Export volumes of sugar and soft‑wood products rose 12% and 9% respectively, buoyed by higher demand in South Africa and the United Arab Emirates.

At the same time, the government’s fiscal tightening—cutting non‑essential spending by 4%—helped pull consumer prices down.

Why does this matter?

For ordinary Swazis, a 5.7% growth rate translates into more jobs in manufacturing and agribusiness, sectors that employ over 40% of the labour force.

Lower inflation means that wages keep their buying power, easing the cost‑of‑living squeeze that hit households hard after the 2023 drought.

Investors watch these numbers closely; a stable price environment lowers the risk premium on sovereign bonds, which could attract foreign capital.

What happens next?

The statistics office warns that the surge rests on temporary commodity price spikes. If global sugar prices fall, growth could slow.

Policymakers say they will keep the fiscal belt tight and aim to diversify the export base into textiles and renewable energy.

“We are on a path to sustainable growth,” the release said, noting the need for structural reforms.

For a deeper look at how Eswatini’s numbers fit into the regional picture, see our economy and markets analysis.

Will the kingdom sustain this momentum, or will external shocks erode the gains? The next quarter’s data will tell.