MBABANE – Eswatini’s economy posted a 5.8% increase in Real GDP in the third quarter of 2025, according to the Ministry of Economic Planning and Development. The Quarterly Economic Bulletin for October to December 2025, compiled by the Macroeconomic Analysis and Research Unit, shows growth across all major sectors and a noticeable easing of household living costs.
The primary sector led growth with an 11.8% rise, driven by a 65.3% jump in mining and quarrying. Analysts linked this surge to increased coal demand following the recovery of the South African ferrochrome industry. In the secondary sector, manufacturing grew 10%, largely due to textiles and grain mill products, while construction expanded 13% amid ongoing public and private infrastructure projects. The tertiary sector rose 6.2%, with the Information and Communication Technology (ICT) subsector recording a substantial 30.6% growth.
Households experienced relief as headline inflation averaged 2.6%, down from 2.7% in the previous quarter. The Ministry noted that this was largely due to a significant drop in food and non-alcoholic beverage prices, which fell from 1.5% to 0.2%. Bread prices rose slightly in November, but cheaper vegetables, poultry, and cereals helped offset the impact on family budgets. 
The Central Bank kept the discount rate at 6.75% and the prime lending rate at 10.25%, maintaining stability for borrowers. This environment encouraged private sector credit to grow 3.3% to E22.408 billion. Credit to businesses reached E11.851 billion, particularly in transport and communication, while household credit rose 4.9% to E9.438 billion, reflecting increased personal and motor vehicle loans.
Eswatini recorded a trade surplus of E1.458 billion, with exports of E12.619 billion led by sugar and “miscellaneous edibles,” while imports totaled E11.161 billion, dominated by food and capital goods. The Lilangeni strengthened against major currencies, averaging E17.13 to the US dollar, E22.75 to the British pound, and E20.43 to the euro. Economists attributed this to a weakened US economy and an improving South African economy.
Government reserves grew by 8.7% to E11.672 billion, providing 2.8 months of import cover, slightly below the recommended three months. October 2025 SACU receipts contributed to the boost. Public sector salary adjustments in October 2025 increased compensation for employees to 92.6% of the budget, while capital expenditure execution slowed to 61.8% compared with the previous year.
The Q4 2025 Bulletin provides families, businesses, and policymakers with a detailed picture of the Kingdom’s economic performance, offering guidance for spending, investment, and planning decisions in the year ahead.
To access the full economic bulletin, see below
