Country profile Swaziland 2016

Abstract

In terms of the economy of Swaziland, growth has been recovering since the 2010/11 fiscal crisis, albeit at a subdued pace. The average growth rate between 2010 and 2015 was 2.6 per cent and according to the Budget Speech 2016, the economy is expected to slow down to an average of 1.5 per cent between 2016/17 and 2018/19 from 1.7 per cent in 2015, owing to declining revenues from the Southern Africa Customs Union (SACU), which are posing fiscal and external balance challenges. The economy of Swaziland is closely linked to that of South Africa (which is the main trading and investment partner) and weak economic prospects in the latter continue to pose downside risks for trade and overall economic performance. In order to improve macroeconomic and financial stability, Swaziland has adopted some measures that are essential for ensuring resilience to external shocks, thereby boosting growth. In addition, there are efforts to create an environment conducive to attract investment - both in terms of indigenous and foreign direct investment. The objective is to diversify exports and promote the growth of micro, small and medium sized enterprises (MSMEs) in order to facilitate employment creation opportunities and income distribution.