IMF Forecasts Eswatini’s Economy to Grow by 3.7% in 2024

MBABANE, Eswatini – The International Monetary Fund (IMF) has projected a 3.7% growth rate for Eswatini’s economy in 2024, as outlined in their April World Economic Outlook. This modest increase indicates a steady continuation of economic activities in the Kingdom, hinting at recovery from previous financial challenges.

The anticipated size of Eswatini’s economy for the year is calculated at E97.2 billion (approximately US$5.09 billion), with the GDP per capita expected to reach E82 614 (US$4,320). When adjusted for purchasing power parity (PPP), a more comprehensive measure of individual wealth, the GDP per capita is expected to be E241 724.83 (US$12,640).

Eswatini, contributing to a minute 0.01% fraction of the global economy based on PPP, is also forecasted to experience a current account surplus of E2.06 billion ($108 million), or 2.1% of the GDP, demonstrating a positive balance of trade and investment flows.

Inflation rates, a key indicator of the cost of living, are predicted to stabilize at 3.9% throughout the year, with year-end inflation slightly lower at 3.1%. This reflects a moderate rise in consumer prices from the end of 2023 to the end of 2024.

However, concerns linger over the unemployment rate, which remains undisclosed in the report. The absence of this data leaves a gap in understanding the full economic picture, particularly regarding labor market health and potential underemployment issues.

The IMF report hints at a potential budget deficit, suggesting that government spending may outpace revenue. The country’s total government debt burden is expected to be 37.2% of the GDP.

Economists regard the IMF’s report as an invaluable snapshot of Eswatini’s economic performance, with the caveat that addressing unemployment and optimizing export potential are critical for sustainable growth.

As Eswatini’s estimated population reaches 1.18 million people in 2024, the nation’s focus is increasingly on harnessing this growth for the improvement of living standards and economic resilience.