IMF Staff Concludes Visit to Swaziland

December 13, 2016

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.

An International Monetary Fund (IMF) team, led by Mr. Geremia Palomba, IMF Mission Chief for Swaziland, visited Mbabane during December 5-12, 2016 to review recent developments, and discuss with the authorities the economic outlook and policy challenges going forward.

At the end of the visit, Mr. Palomba issued the following statement:

“During 2016, Swaziland has been hit by a severe drought and a sharp decline in Southern African Customs Union (SACU) revenue. The drought is projected to weigh heavily on 2016 growth and inflation. The decline in SACU revenue has put pressure on both external and fiscal accounts. An expansionary fiscal stance has amplified the negative impact of these economic shocks on the budget.

“Discussions with the authorities focused on the economic impact of recent developments, in particular on fiscal accounts, and policy options going forward. Discussions set the stage for the upcoming 2016 Article IV consultation with Swaziland planned to take place in the first half of 2017.

“The mission met with Prime Minister Barnabas Sibusiso Dlamini, Minister of Finance Martin Dlamini, Minister of Economic Planning and Development Prince Hlangusemphi, Central Bank of Swaziland Governor Majozi Sithole, other senior officials, and private sector representatives.

“The mission thanks the authorities for their hospitality and the productive and open discussions.”