Eswatini National Development Plan 2023-2028

Eswatini is a lower middle-income country but the economic and social indicators are in contrast. Economic performance continues to be very poor and has been in a crisis state for a number of years. Government started implementing the fiscal adjustment plan (FAP) agreed with the IMF from FY 2021/22 which will run for 3 years, aimed at achieving fiscal consolidation to establish a foundation for economic growth. The poor economic performance is characterised by high vulnerability to external shocks, poor growth that is highly dependent on government activities for stimulus, a fiscal crisis with high deficit levels largely financed through borrowing leading to fast increasing debt levels with high interest payments and combined with increasing arrears that are forcing the private sector into a state of insolvency. In addition, youth unemployment is estimated at 58.2 percent, poverty levels are high and income distribution is skewed, and the social sector is poorly resourced with a poor health system faced with an increasing disease burden as well as diminishing quality and relevance of education. The risk of frequent drought occurrence and floods is exposing the vulnerability of agriculture and other sectors to changing climate conditions. Disasters are also a frequent likelihood.