BY MBONGENI NDLELA
MBABANE – Eswatini’s economy registered impressive growth of 5.6 per cent in 2025, marking a major improvement from the 3.0 per cent recorded in 2024, according to the Central Bank of Eswatini’s 2026 Governor’s Annual Monetary Policy Statement.
The report shows that the country’s growth was largely driven by strong performance in the tertiary sector, especially wholesale and retail trade, financial services, construction and information communication technology.
Preliminary estimates released by the Macro-Forecasting Team indicate that economic expansion benefited from improved domestic demand, strong infrastructure investment and favourable inflation conditions.“The tertiary sector is estimated to have grown by 7.6 per cent in 2025, rebounding strongly from 1.2 per cent in the previous year,” the report stated.
One of the strongest performing sectors was wholesale and retail trade, which rebounded sharply from a decline of 3.3 per cent in 2024 to growth of 9.7 per cent in 2025.
The report attributes the recovery to improved household spending supported by public sector salary review adjustments and lower inflation, which boosted real incomes.
Financial and insurance services also performed strongly, recording growth of 11.8 per cent after declining by 3.2 per cent in 2024.
“The growth was driven by strong performance in the insurance and pensions subsector,” the Central Bank noted.
Construction emerged as another major growth engine, benefiting from large public and private infrastructure projects. These include the Mpakeni Dam project, strategic road construction projects and energy developments.
According to the report, the construction subsector is expected to continue performing strongly in 2026, with projected growth of 31.4 per cent.
“The construction subsector is projected to grow significantly by 31.4 per cent in 2026, supported by accelerated implementation of large-scale public and private sector projects,” the report highlighted.
The information and communication technology sector also maintained strong momentum, reflecting sustained investment in digital infrastructure and services.
Despite the strong overall performance, some sectors faced challenges. Manufacturing growth slowed due to weaker external demand in export-oriented industries such as textiles and chemicals. The agriculture sector also faced setbacks due to foot and mouth disease outbreaks which affected beef exports to the European market.
However, the report projects continued positive momentum for the economy in 2026, with GDP expected to grow by 5.2 per cent.
The Central Bank believes improved weather conditions, increased mining activity, stronger manufacturing performance and continued infrastructure development will support economic growth over the medium term.
Governor Dr. Phil Mnisi said the country remains well-positioned to benefit from ongoing investments and structural economic improvements despite global uncertainty.
The latest report signals growing confidence in Eswatini’s economic resilience and development prospects.
