Eswatini's economy expanded by 6.1% in the first quarter of 2026, placing the country among the stronger-performing economies in the Southern African Customs Union (SACU) region. According to the Central Bank of Eswatini's June 2026 Quarterly Review, the domestic economy recorded year-on-year growth of 6.1% on a seasonally adjusted basis in the first quarter, accelerating from a revised 5.8% in the fourth quarter of 2025.
The performance was underpinned principally by a sharp recovery in the secondary sector, while the primary and tertiary sectors also recorded positive growth, although performance within the sectors was uneven. On a quarter-on-quarter basis, economic activity increased by 1.1% on a seasonally adjusted basis during the first quarter. The Central Bank's assessment comes against a varied economic picture across SACU.
Botswana recorded the strongest reported expansion among the SACU economies during the first quarter of 2026, with real GDP growing by 9.2% year-on-year. The growth represented a significant turnaround from the 11.9% contraction recorded in the fourth quarter of 2025. The Central Bank said Botswana's rebound was driven mainly by exceptionally strong performance in water and electricity, which expanded by 87.4%, and diamond trade, which increased by 60.5%.
Eswatini's 6.1% expansion came below Botswana's reported rate, but represented continued positive momentum following the revised 5.8% growth recorded in the final quarter of 2025. In Eswatini, the strongest contribution came from the secondary sector, which expanded by 13.9% year-on-year after contracting marginally by 0.4% in the preceding quarter.
The secondary sector alone contributed 4.5 percentage points to overall GDP growth. Manufacturing output increased by 12.4% year-on-year, recovering from a 1.2% contraction in the fourth quarter of 2025. The Central Bank attributed the improvement mainly to stronger demand and increased activity in key manufacturing subsectors.
Construction provided another major source of momentum, accelerating by 33.3% year-on-year from 11.8% previously. The Central Bank linked the performance to ongoing public and private infrastructure projects. The manufacturing of non-metal mineral products and manufacture of metal products also benefitted from sustained construction activity.
In contrast, Namibia's economy contracted by 1.5%, while South Africa recorded quarter-on-quarter growth of 0.5%, and Lesotho's economy contracted by 0.8% on the same basis. The comparison nevertheless needs to be read with the measurement periods in mind, as Eswatini's 6.1% and Botswana's 9.2% are year-on-year growth rates, whereas the figures reported for South Africa and Lesotho are quarter-on-quarter changes.
Key points
- Eswatini's economy grew 6.1% in Q1 2026, driven by a sharp recovery in the secondary sector.
- Botswana recorded the strongest expansion among SACU economies with 9.2% growth.
- Eswatini's growth outpaced most SACU peers, except for Botswana.
