MBABANE – Eswatini’s economy strengthened during the first half of 2026, with real GDP growth accelerating from 6.1 per cent in the first quarter to 6.5 per cent in the second quarter.
The latest figures from the Central Statistical Office (CSO) show that economic activity remained firmly in positive territory during both quarters, although the nature of the expansion changed considerably between January-March and April-June.
The first quarter recorded year-on-year growth of 6.1 per cent, up sharply from 1.1 per cent in the corresponding quarter of 2025. The economy also expanded by 1.1 per cent quarter-on-quarter, following virtually flat growth of 0.01 per cent in the fourth quarter of 2025.
In the second quarter, year-on-year growth accelerated further to 6.5 per cent, but quarter-on-quarter momentum moderated to 0.7 per cent from the revised 2.6 per cent recorded in the first quarter.
This means that while the economy was producing significantly more output than a year earlier, the pace of expansion between the first and second quarters slowed.
The composition of growth provides a clearer picture of the economy’s performance.
In constant prices, total GDP increased from E18.399 billion in the first quarter to E18.721 billion in the second quarter, while seasonally adjusted real GDP rose from E19.649 billion to E19.791 billion over the same period.
At current prices, GDP increased from E22.853 billion in the first quarter to E24.044 billion in the second quarter.
The distinction between current and constant prices is important because the real GDP growth rate is designed to capture changes in economic output, while removing the effect of price changes.
The CSO states that its quarterly GDP estimates are seasonally adjusted to remove fluctuations associated with factors such as weather, holidays and annual events, allowing comparisons between periods to better reflect underlying economic trends.
Taken together, the two quarters present an economy that entered 2026 with strong momentum and maintained it through June.
Year-on-year growth improved from 6.1 per cent in the first quarter to 6.5 per cent in the second. At the same time, quarter-on-quarter growth slowed from 2.6 per cent in the first quarter to 0.7 per cent in the second.
The figures, therefore, point to continued expansion rather than a uniform acceleration across every measure.
The first quarter’s performance was heavily supported by construction and manufacturing, while the second quarter saw greater contributions from mining, manufacturing, electricity, information and communication, accommodation and professional services.
At the same time, construction, finance and insurance, transport and storage, education and health and wholesale and retail trade either weakened or remained subdued during the second quarter.
For businesses, the data suggest that the expansion is being supported by a combination of industrial activity, extractive industries and rapidly growing service segments rather than broad acceleration across every part of the economy.
In the first quarter, the secondary sector was the strongest broad sector, expanding by 13.9 per cent year-on-year. Manufacturing grew by 12.4 per cent, while construction recorded exceptionally strong growth of 33.3 per cent.
The primary sector expanded by 2.0 per cent, supported by crop production, forestry and mining, which grew by 5.6 per cent, 14.6 per cent and 8.5 per cent respectively.
The tertiary sector, which accounted for 60.9 per cent of total industries during the quarter, grew by 2.8 per cent. Accommodation, information and communication and professional services were among its main contributors, recording growth of 27.2 per cent, 59.6 per cent and 19.4 per cent respectively.
The second quarter produced a somewhat different growth pattern.
The primary sector accelerated sharply, growing by 9.3 per cent year-on-year. Mining was the standout performer, expanding by 24.3 per cent, while forestry and crop production grew by 6.9 per cent and 6.5 per cent respectively.
The secondary sector remained a major engine of growth, recording 11.6 per cent expansion. Manufacturing increased by 14.0 per cent, while electricity supply grew by 21.8 per cent.
The tertiary sector also strengthened, although its growth rate of 4.1 per cent remained below that of the primary and secondary sectors. Information and communication expanded by an exceptional 55.6 per cent, accommodation by 19.6 per cent and professional services by 8.1 per cent.
Manufacturing emerged as one of the most consistent contributors to economic expansion across the two quarters.
The sector grew by 12.4 per cent in the first quarter before accelerating to 14.0 per cent in the second. Its contribution is particularly significant because manufacturing is one of the largest individual industries in the economy.
The CSO data show that manufacturing accounted for 24.7 per cent of GDP in the first quarter, based on the revised industry shares, rising to 28.1 per cent in the second quarter.The performance suggests that industrial activity remained an important source of momentum during the first half of the year. Electricity and water also strengthened substantially. Having grown by 4.1 per cent in the first quarter, the sector expanded by 11.8 per cent in the second quarter.
Mining was another major source of acceleration. Growth increased from 8.5 per cent in the first quarter to 24.3 per cent in the second quarter, making mining one of the fastest-growing activities during April-June.
One of the most notable changes between the two quarters was construction.
The industry grew by a remarkable 33.3 per cent year-on-year in the first quarter, helping to drive the secondary sector’s 13.9 per cent expansion.
However, construction contracted by 7.9 per cent in the second quarter.
The turnaround is important because it demonstrates that headline GDP growth during the first half was not driven by a single sector throughout the period. The economy’s momentum shifted towards mining, manufacturing, electricity, information and communication and other services as construction weakened.
Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.
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Source: Times of Eswatini (Eswatini)
