Swaziland Economy Profile 2009

Economy - overview

In this small, landlocked economy, subsistence agriculture occupies approximately 70% of the population. The manufacturing sector has diversified since the mid-1980s. Sugar and wood pulp remain important foreign exchange earners. In 2007, the sugar industry increased efficiency and diversification efforts, in response to a 17% decline in EU sugar prices. Mining has declined in importance in recent years with only coal and quarry stone mines remaining active. Surrounded by South Africa, except for a short border with Mozambique, Swaziland is heavily dependent on South Africa from which it receives more than nine-tenths of its imports and to which it sends 60% of its exports. Swaziland's currency is pegged to the South African rand, subsuming Swaziland's monetary policy to South Africa. Customs duties from the Southern African Customs Union, which may equal as much as 70% of government revenue this year, and worker remittances from South Africa substantially supplement domestically earned income. Swaziland is not poor enough to merit an IMF program; however, the country is struggling to reduce the size of the civil service and control costs at public enterprises. The government is trying to improve the atmosphere for foreign investment. With an estimated 40% unemployment rate, Swaziland's need to increase the number and size of small and medium enterprises and attract foreign direct investment is acute. Overgrazing, soil depletion, drought, and sometimes floods persist as problems for the future. More than one-fourth of the population needed emergency food aid in 2006-07 because of drought, and nearly two-fifths of the adult population has been infected by HIV/AIDS.

GDP (purchasing power parity)

$5.702 billion (2008 est.)
$5.552 billion (2007 est.)
$5.364 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$2.843 billion (2008 est.)

GDP - real growth rate

2.7% (2008 est.)
3.5% (2007 est.)
2.8% (2006 est.)

GDP - per capita (PPP)

$5,100 (2008 est.)
$4,900 (2007 est.)
$4,700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 11.2%
industry: 46%
services: 42.8% (2008 est.)

Population below poverty line

69% (2006)

Labor force

457,900 (2007)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

40% (2006 est.)

Household income or consumption by percentage share

lowest 10%: 1.6%
highest 10%: 40.7% (2001)

Distribution of family income - Gini index

50.4 (2001)

Investment (gross fixed)

18.8% of GDP (2008 est.)

Budget

revenues: $1.055 billion
expenditures: $1.083 billion (2008 est.)

Inflation rate (consumer prices)

12.6% (2008 est.)
8.1% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
11% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
13.17% (31 December 2007)

Stock of money

$NA (31 December 2008)
$244.8 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$529.4 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$204.1 million (31 December 2007)

Industries

coal, wood pulp, sugar, soft drink concentrates, textiles and apparel

Industrial production growth rate

1.1% (2008 est.)

Electricity - production

460 million kWh (2007)

Electricity - production by source

fossil fuel: 58%
hydro: 42%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

1.2 billion kWh (2007)

Electricity - exports

0 kWh (2007)

Electricity - imports

872 million kWh; note - electricity supplied by South Africa (2007)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

3,490 bbl/day (2006 est.)

Oil - imports

3,530 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$30 million (2008 est.)
$4 million (2007 est.)

Agriculture - products

sugarcane, cotton, corn, tobacco, rice, citrus, pineapples, sorghum, peanuts; cattle, goats, sheep

Exports

$1.759 billion (2008 est.)
$1.95 billion (2007 est.)

Exports - commodities

soft drink concentrates, sugar, wood pulp, cotton yarn, refrigerators, citrus and canned fruit

Imports

$1.858 billion (2008 est.)
$1.926 billion (2007 est.)

Imports - commodities

motor vehicles, machinery, transport equipment, foodstuffs, petroleum products, chemicals

Reserves of foreign exchange and gold

$730 million (31 December 2008 est.)
$774.2 million (31 December 2007 est.)

Debt - external

$554 million (31 December 2008 est.)
$524 million (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$203.1 million (31 December 2007)
$199.9 million (31 December 2006)

Economic aid - recipient

$46.03 million (2005)

Currency (code)

SZL

Currency (code)

lilangeni (SZL)

Exchange rates

emalangeni per US dollar - 7.75 (2008 est.), 7.4 (2007), 6.85 (2006), 6.3593 (2005), 6.4597 (2004)

Fiscal year

1 April - 31 March