The Central Bank of Eswatini released its Recent Economic Developments update for December 2024 and January 2025, reporting a further rise in annual consumer inflation, unchanged discount and prime lending rates, a weaker Rand/Lilangeni against major currencies, and a sharp increase in gross official reserves driven by Southern African Customs Union receipts. Annual consumer inflation increased to 3.9% in December 2024 from 3.7% in November, with pressures linked mainly to non-durable goods and a rise in the housing and utilities index following the first tranche of a 4.0% water tariff increase under a multi-year cumulative tariff of 12.0%. Core inflation rose to 3.9% from 3.8%. Broad money (M2) fell 7.4% month on month to SZL 24.5 billion in December, alongside a 24.2% month-on-month drop in net foreign assets to SZL 8.9 billion, while private sector credit grew 0.8% month on month to SZL 20.4 billion and the nonperforming loan ratio increased to 7.5% with NPLs at SZL 1.3 billion. Gross official reserves rose 24.4% month on month to SZL 12.6 billion at end-January 2025 and import cover improved to 2.9 months, still below the 3.0-month benchmark. Total public debt stood at SZL 34.8 billion at end-January, equivalent to 36.5% of GDP, with both external debt (SZL 16.5 billion) and domestic debt (SZL 18.2 billion) declining from December. The merchandise trade balance swung to a surplus of SZL 446.2 million in January 2025 as exports rose to SZL 3.230 billion and imports fell to SZL 2.783 billion.

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