Mbabane – Eswatini recorded a trade deficit of E818.5 million in the second quarter of 2026 as imports grew faster than exports, according to the latest Quarterly Economic Bulletin released by the Macroeconomic Analysis and Research Unit.
The country’s merchandise exports increased by 6.1 per cent to E10.657 billion, while imports rose by 8.7 per cent to E11.476 billion during the quarter under review.
The faster growth in imports widened the gap between the value of goods entering and leaving the country, leaving imports exceeding exports by E818.5 million.
Despite the deficit, sugar and textile exports performed strongly during the period.
The report also showed that the Lilangeni weakened against major trading currencies during the second quarter. The United States dollar averaged E16.48, the British pound E22.12 and the euro E19.16.
Meanwhile, headline inflation increased to 2.4 per cent in the second quarter, up from 1.9 per cent in the first quarter. The increase was mainly driven by higher prices in the housing and utilities category, as well as transport, while food inflation moderated.
The external developments came amid rising global commodity prices, with Brent crude oil averaging US$95.30 per barrel, an increase of 25.8 per cent compared with the previous quarter. Global coal and food prices also rose.
Despite the pressure on trade and prices, Eswatini’s real gross domestic product grew by 6.1 per cent year-on-year in the first quarter of 2026. Growth was driven mainly by manufacturing, mining and quarrying, and information and communication technology, while the secondary sector expanded by 13.9 per cent.
Private sector credit increased by 2.7 per cent in the second quarter to E23.765 billion. Credit to households rose by 4.4 per cent, while lending to businesses increased by 2.0 per cent.
Interest rates remained unchanged, with the discount rate at 6.75 per cent and the prime lending rate at 10.25 per cent. Gross Official Reserves stood at E8.1 billion, equivalent to 1.9 months of import cover.
On public finances, Government revenue rose by 6.7 per cent in the first quarter of the 2026/27 financial year, supported by Pay As You Earn tax, value-added tax, fuel tax and Southern African Customs Union receipts. Total Government expenditure declined by 2.5 per cent, although capital spending recorded strong growth.
The bulletin also reported that the International Monetary Fund had revised its 2026 global growth forecast downwards to 3.0 per cent from 3.3 per cent. South Africa, Eswatini’s main trading partner, was projected to grow by 1.1 per cent in 2026.
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