IMF Staff Country Reports

The 2024 Article IV Consultation discusses that Eswatini’s growth is estimated to have reached 4.9 percent of gross domestic product (GDP) in 2023, driven by exports of sugar and soft drink concentrates, tourism, and the communication sector, and is poised to remain in the 4.5 to 5 percent range in 2024. Unemployment remains high at 35.4 percent in 2023 and 48.7 percent among the youth, with large skill gaps and mismatches being critical factors. While social indicators need to be updated, discussions indicated that poverty, food insecurity, inequality, and gender-based violence remain important social challenges. Growth is expected to slow while inflation is projected to follow global developments and decline throughout the 5-year projection horizon. With Southern African Customs Union receipts projected to fall, the authorities are expected to exercise the expenditure restraint needed to keep debt around 40 percent of GDP. The current account is projected to remain in surplus but official reserves will likely remain low.