Mbabane – The Eswatini Ministry of Economic Planning and Development has released its Quarter 2 Economic Bulletin, covering April to June 2025, showing mixed signals for the domestic economy.
The report indicates that the country’s real GDP grew by 0.5 percent quarter-on-quarter but contracted by 0.3 percent compared to the same period last year. The slowdown was mainly due to weak performance in the primary and secondary sectors, although the tertiary sector saw stronger growth driven by wholesale and retail trade, financial services, ICT, real estate, and public administration. Notably, construction activities expanded by 25.9 percent thanks to ongoing public and private mega projects such as the Mpakeni dam and the International Convention Centre.
Inflationary pressures eased during the quarter, with headline inflation dropping from 4.0 percent in Q1 to 3.1 percent. Prices for food and non-alcoholic beverages slowed, while housing and utilities also saw reduced inflation. The Central Bank maintained an accommodative monetary policy, lowering the discount rate to 6.75 percent and the prime lending rate to 10.25 percent to support economic growth. 
Credit to the private sector rose slightly to E21.595 billion, with households and businesses benefiting differently. Business credit increased by 2 percent, supported by agriculture, construction, and real estate, while household credit rose modestly, driven by motor vehicle and personal loans.
Eswatini’s trade balance recorded a deficit of E325 million as exports fell by 9.3 percent to E10.093 billion, led by declines in sugar, textiles, and miscellaneous edible products. Imports increased by 3.2 percent to E10.418 billion.
Gross official reserves grew 29.1 percent to E11.8 billion, largely due to SACU inflows in April, though they remain sufficient to cover just over two months of imports.
On the regional and global front, the bulletin noted improved global growth projections of 3 percent in 2025, influenced by shifts in US trade policies, easing geopolitical tensions, and fiscal expansions in several countries. Sub-Saharan Africa is expected to maintain 4 percent growth, while South Africa’s economy is projected to expand by 1 percent in 2025, maintaining its role as Eswatini’s key trading partner.
The Ministry acknowledged contributions from stakeholders who provided data and support for the compilation of the bulletin.
