…. Global Conflicts Threaten Economic Stability
…. Eswatini Economy Remains Resilient and Growing
…. Low Inflation Offers Relief to Consumers
…. Sustainable Jobs Key to Reducing Poverty
BY MBONGENI NDLELA
SIBEBE RESORT– Central Bank Governor Dr. Phil Mnisi says Eswatini’s economy continues to demonstrate remarkable resilience despite mounting global economic uncertainties, geopolitical tensions and rising commodity prices that are affecting economies across the world.
Addressing journalists, editors, media executives and journalism students during the Governor’s Annual Media Engagement Session held at Sibebe Resort on Friday morning, Dr. Mnisi painted a comprehensive picture of both the global and domestic economic landscape while highlighting the country’s continued economic strength and prudent monetary policy management.
The engagement, organised in partnership with the Editors’ Forum, provided a platform for open dialogue between the Central Bank and the media on key economic and financial issues affecting the country.
Dr. Mnisi emphasized the importance of the longstanding partnership between the Central Bank and the media, noting that accurate and timely information remains critical in promoting transparency and public understanding of economic developments.
“We recognise and deeply appreciate the critical role that media practitioners play in informing the public, shaping discourse and promoting transparency,” said the Governor.
Global economy facing tough conditions
Turning to the global outlook, Dr. Mnisi said the international economy is currently operating under exceptionally challenging circumstances.
According to the latest International Monetary Fund projections released in April 2026, global economic growth is expected to slow to 3.1 percent this year due to ongoing conflicts, particularly in the Middle East, increased uncertainty and mounting economic pressures. Growth is forecast to improve slightly to 3.2 percent in 2027.
The Governor warned that prolonged geopolitical conflicts could further weaken global economic activity and create instability in financial markets.
Eswatini showing strong economic momentum
Against this difficult global backdrop, the Governor reported encouraging developments within Eswatini.
He revealed that the country’s economy remained robust during the final quarter of 2025, with real Gross Domestic Product growing by 5.7 percent year-on-year. The performance reflects sustained economic momentum and demonstrates the resilience of the domestic economy.
Dr. Mnisi acknowledged that rising fuel prices, global uncertainty and fiscal pressures could affect future growth prospects. However, he emphasized the importance of maintaining economic expansion because of its direct impact on employment creation and poverty reduction.
The Governor stressed that sustainable employment opportunities are primarily created through manufacturing, value addition and beneficiation rather than short-term construction activities.
Low inflation providing relief
One of the most positive developments highlighted by the Governor was the country’s inflation performance.
Dr. Mnisi noted that headline inflation increased slightly from 1.6 percent in March to 2 percent in April 2026. However, he pointed out that Eswatini is currently experiencing one of its lowest inflation periods in recent history.
Central bank maintains cautious approach
Dr. Mnisi also used the engagement to provide insight into how monetary policy decisions are made.
He disclosed that the Central Bank recently maintained the discount rate at 6.75 percent after carefully assessing economic conditions and emerging risks. The decision reflects a cautious approach as authorities monitor evolving global developments.
Investing in people and knowledge
Beyond economic matters, Dr. Mnisi delivered a powerful message on the value of experience, education and exposure.
He encouraged younger professionals to learn from experienced practitioners and stressed the importance of preserving institutional knowledge while preparing future generations for leadership roles.
Strengthening transparency and collaboration
The annual media engagement reaffirmed the Central Bank’s commitment to transparency, stakeholder engagement and public accountability.
As Eswatini navigates a rapidly changing global environment, the Governor’s message was clear: while challenges remain, the country’s economic fundamentals are strong, inflation remains under control and prudent policymaking continues to position the nation for sustainable growth and development.
(Courtesy Pic)
