Mbabane – Eswatini’s economy grew by 5.7 per cent year-on-year in the fourth quarter of 2025, slightly down from the revised 5.9 per cent recorded in the previous quarter, according to the Central Bank of Eswatini’s latest economic developments report for March and April 2026.
The moderation in growth was largely due to weaker performance in the primary and secondary sectors, while the tertiary sector remained the main driver of overall economic activity, growing by 9.9 per cent in the fourth quarter of 2025 compared to 4.5 per cent in the previous quarter. The tertiary sector accounts for 56.3 per cent of total industry output, with strong contributions from wholesale and retail trade, financial and insurance services, and information and communication technology.
Figure 1: Eswatini Quarterly GDP Trends (Seasonally Adjusted); 2023Q1 to 2025Q4
The primary sector slowed sharply from 13.7 per cent growth to 2.6 per cent in the fourth quarter, while the secondary sector contracted by 0.5 per cent following strong growth of 10.3 per cent in the previous quarter. The contraction in the secondary sector was driven by weaker performance in manufacturing, electricity supply and water and sewerage. Manufacturing activity declined marginally by 0.3 per cent, with reduced output in food processing, particularly sugar, as well as chemical products and textiles, reflecting softer external demand. Construction, however, remained a bright spot, growing by 11.8 per cent on the back of major public infrastructure projects and private sector developments. 
Figure 2: Production Sectors Growth Rates 2025 Q3 versus 2025 Q4
Inflation at lowest since 2019
Annual consumer price inflation fell further to 1.6 per cent in March 2026, the lowest level since October 2019. Downward pressure came from eight out of twelve broad consumption basket categories, with food and non-alcoholic beverages, transport and housing and utilities jointly accounting for 65.4 per cent of the consumption basket leading the decline.
Food prices recorded a deflation of 0.1 per cent in March 2026, driven by lower prices for cereals, vegetables and poultry. Domestic fuel prices were 5.0 per cent lower than the same period the previous year, contributing to a deflation of 0.6 per cent in transport costs. Core inflation, which excludes volatile items such as food, auto-fuel and energy, remained unchanged at 2.3 per cent year-on-year.
Figure 3: Inflation Trends and components Jan 2025 to Mar 2026
Credit and money supply
Credit extended to the private sector reached a new peak of E23.2 billion at the end of March 2026, growing by 0.9 per cent month-on-month and 8.1 per cent year-on-year. Business sector credit drove the monthly growth, expanding by 2.6 per cent to a new high of E12.7 billion, with manufacturing, construction, distribution and tourism among the sectors recording increases.
Broad money supply grew by 3.0 per cent month-on-month and 17.1 per cent year-on-year to reach E27.8 billion at the end of March 2026, supported by growth in quasi money supply. Non-performing loans stood at E1.4 billion in March 2026, with the NPL ratio declining slightly to 6.8 per cent.
Reserves and exchange rate
The country’s gross official reserves increased by 5.3 per cent month-on-month to E10.2 billion at the end of April 2026, boosted by the quarterly inflow of Southern African Customs Union revenue. The import cover improved from 2.2 months in March 2026 to 2.3 months in April 2026, though reserves remained 2.7 per cent lower than the same period a year ago.
The Lilangeni appreciated against major trading currencies in April 2026, strengthening from an average of E16.72 to E16.54 against the US Dollar. Strong precious metal prices and a trade surplus supported the Rand, though global risk perceptions remained fragile amid intermittent closures of the Strait of Hormuz, which disrupted global oil and gas supply. By the end of April, the Lilangeni was trading at E16.85 per US Dollar, E22.71 per Pound Sterling and E19.67 per Euro.
Figure 4: Net Foreign Assets Monthly Changes; April 2025 to April 2026
| Mar- 25 |
Apr- 25 |
May- 25 |
Jun- 25 |
Jul- 25 |
Aug- 25 |
Sep- 25 |
Oct- 25 |
Nov- 25 |
Dec- 25 |
Jan- 26 |
Feb- 26 |
Mar- 26 |
|
| NFA (E’billion) | 7.4 | 8.6 | 7.5 | 6.1 | 11.0 | 10.4 | 9.8 | 13.0 | 15.0 | 10.5 | 10.8 | 8.2 | 7.6 |
| NFA (% change) | -30.6 | 16.9 | -13.2 | -18.3 | 80.6 | -5.5 | -5.5 | 31.5 | 15.8 | -30.0 | 2.4 | -23.8 | -6.9 |
Public debt declines
Total public debt stood at E39.5 billion, equivalent to 37.9 per cent of GDP, at the end of April 2026, down from E41.0 billion in March 2026. External debt stood at E19.5 billion, or 18.7 per cent of GDP, while domestic debt declined to E20.0 billion, equivalent to 19.2 per cent of GDP, largely due to Treasury bill maturities and repayment of Central Bank advances.
Trade balance
Eswatini recorded a positive trade balance of E794.2 million in April 2026, though this was 12.5 per cent lower than the E907.8 million surplus recorded in March 2026. Export earnings declined by 3.4 per cent month-on-month to E3.7 billion, with lower soft drink concentrate and wood exports. Sugar and sugar products exports, however, surged by 54.7 per cent month-on-month to E1.1 billion, driven by strong demand from the European market.
South Africa remained Eswatini’s leading trading partner, accounting for 60.4 per cent of exports and 70.5 per cent of imports in April 2026.
