BY MBONGENI NDLELA
MBABANE – Eswatini enters 2026 with 5.6% GDP growth, 2.3% inflation and a 6.75% policy rate, a strong set of figures that reflects economic stability and steady momentum.
The latest data points to rising output, controlled prices and a supportive financial sector environment.
The Central Bank of Eswatini maintained its discount rate at 6.75%, with banks expected to keep the prime lending rate at 10.25% for households and businesses.
This provides certainty in borrowing costs and supports investment and spending.
Inflation remains well contained. Headline inflation eased to 2.3% in December 2025, while the 2026 forecast stands at 3.97%, signaling only moderate price increases ahead. Stable inflation helps preserve consumer purchasing power and business confidence.
Growth continues to strengthen. GDP expanded by 5.6% in 2025, up from 3.0% in 2024. Quarterly GDP grew 5.8% year-on-year in the third quarter of 2025, with all major sectors contributing to the expansion. These figures highlight broad-based economic progress.
Financial sector indicators are positive. Private sector credit increased 9.8% to E22.4 billion, while the non-performing loan ratio improved to 6.7%. This reflects both active lending and improving repayment performance.
On the global stage, the International Monetary Fund projects 3.3% world growth in 2026 alongside easing inflation. Regionally, the South African Reserve Bank also held its rate at 6.75%, reinforcing a stable monetary climate in the region.
The Central Bank Governor affirmed the Bank’s commitment to monitoring global and domestic trends to protect price and financial stability. With growth above 5%, low inflation and expanding credit, Eswatini’s figures present a positive outlook for sustained economic progress.
