Central Bank of Eswatini published its January/February 2025 Recent Economic Developments report, indicating that quarterly GDP returned to growth in Q3 2024 and inflation continued to edge higher at the start of 2025, while the discount rate and prime lending rate were maintained at 7.0 percent and 10.50 percent in February 2025. The update also points to faster growth in credit and money in January 2025, but a February decline in gross official reserves that pushed import cover below the 3.0-month benchmark. Seasonally adjusted quarterly GDP expanded by 1.4 percent year on year in Q3 2024 after a 0.5 percent contraction in Q2, supported by rebounds in the secondary sector to 3.0 percent and the tertiary sector to 2.5 percent, while the primary sector fell 9.6 percent. Headline inflation rose to 4.1 percent in January 2025 from 3.9 percent in December 2024, with core inflation at 4.2 percent, driven mainly by education and food prices. Net foreign assets increased to SZL 11.6 billion at the end of January, largely reflecting Southern African Customs Union (SACU) receipts, whereas gross official reserves fell 5.3 percent month on month to SZL 12.2 billion at the end of February, with the decline attributed to net ZAR outflows from trades with local commercial banks. Private sector credit increased to SZL 21.0 billion in January, up 2.8 percent month on month, and the nonperforming loan ratio rose to 7.8 percent, while broad money (M2) grew 4.3 percent month on month to SZL 25.5 billion. Total public debt reached SZL 35.6 billion at the end of February, equivalent to 37.3 percent of GDP, and the merchandise trade surplus widened to SZL 308.8 million in February as exports rose 12.3 percent month on month to SZL 3.565 billion and imports increased 11.2 percent to SZL 3.256 billion.
Central Bank of Eswatini 2025-03-26
Central Bank of Eswatini publishes January and February 2025 economic report showing inflation at 4.1 percent and reserves cover down to 2.8 months
The Central Bank of Eswatini's January/February 2025 report highlights a 1.4% GDP growth in Q3 2024, with inflation rising to 4.1% in January 2025. Despite maintaining the discount and prime lending rates, gross official reserves fell below the 3.0-month import cover benchmark in February due to net ZAR outflows. Private sector credit and broad money saw growth in January, while the nonperforming loan ratio increased to 7.8%.