Eswatini reports trade deficit and construction sector surge

Eswatini experienced a widening trade deficit of E818.5 million in the second quarter of 2026. While merchandise exports grew by 6.1% to E10.657 billion, imports rose more rapidly by 8.7% to E11.476 billion. Despite the deficit, sugar and textile exports remained strong. The Lilangeni weakened against the US dollar, British pound, and euro, while headline inflation rose to 2.4% from 1.9% in the previous quarter, driven largely by housing, utilities, and transport costs.

In the construction sector, registered project value surged by approximately 294% to E11.24 billion during the 2025/26 financial year. This growth was heavily driven by public-sector investment, with government and parastatal projects accounting for 80.2% of the total value. While parastatal and government project values saw significant increases, private residential construction saw a sharp decline of 52%, falling to E23.2 million.