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Swaziland’s economy to grow by 1% – IMF

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Swaziland’s economy is likely to grow by not more than one percent, if projections made by the International Monetary Fund (IMF) are anything to go by, APA can report here on Tuesday.IMF Mission Chief for Swaziland Geremia Palomba said this to local media during the article IV visit convened at the Ministry of Finance boardroom on Tuesday.
“In 2016, a prolonged drought and a sharp decline in revenue from Southern African Customs Union (SACU) severely hit the economy. An expansionary fiscal policy weakened the fiscal accounts and led to the accumulation of domestic arrears,” he said during the media briefing.
He explained that based on preliminary data, the IMF estimated 2016 growth to stagnate. He said a muted recovery is envisaged in 2017, as the weaker fiscal position weighs heavily on the outlook.
“Risks to this outlook are tilted to the downside and include further tightening in budget financing, volatile Southern African Customs Union (SACU) revenue, lower demand for key exports and tightened global monetary conditions,” he made an analysis.
The IMF official applauded the government and the Central Bank of Swaziland (CBS) for taking steps towards containing the fiscal deficit and countering the still high inflation.

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