Central Bank of Eswatini reports inflation easing to 1.9 percent and March trade surplus widening to E889.8 million

The Central Bank of Eswatini’s February and March 2026 economic update showed a softer inflation backdrop alongside mixed monetary and external conditions. Headline consumer inflation fell for a fourth consecutive month to 1.9 per cent in February, the discount and prime lending rates were maintained, private sector credit rose to E22.9 billion, and broad money supply contracted 5.4 per cent month on month. By March, gross official reserves had increased to E10.9 billion, equivalent to 2.5 months of import cover, the Lilangeni had depreciated against major currencies, and the trade surplus had widened sharply to E889.8 million. The decline in inflation was driven mainly by lower food and fuel prices, with food inflation moderating to 0.2 per cent and monthly CPI recording a 0.1 per cent deflation, while core inflation remained at 2.3 per cent. Financial conditions were mixed: net foreign assets fell 23.8 per cent in February to E8.2 billion, reflecting lower banking sector placements within the Common Monetary Area and official-sector foreign exchange outflows, and the non-performing loan ratio edged up to 6.9 per cent. Public debt rose to E41.0 billion, or 42.7 per cent of GDP, at the end of March as external debt increased on project and budget support loan disbursements and domestic debt rose on Treasury bond issuance, while the March trade surplus was supported by stronger exports of soft drink concentrates and textiles alongside lower imports overall.