By Ntokozo Nkambule
The Ministry of Economic Planning & Development says that government-linked sectors are anticipated to perform well in 2023.
The Minister of Economic Planning & Development Dr. Tambo Gina in a published Official Statement titled ESWATINI MEDIUM-TERM ECONOMIC GROWTH FORECASTS (2022-2025)- JANUARY 2023 REVIEW notes that there is an improvement in the fiscal space in anticipation of better revenues coming through the Southern African Customs Union (SACU).
“The improved SACU revenues will support both public consumption and investment spending. Thus, sectors linked to the government are expected to perform better than previously projected. On the negative, the potential risk of a global recession is expected to dampen growth prospects on sectors reliant on external demand” notes the Medium Term Economic Growth Forecast.
The ministry also believes the economy will grow significantly in 2023. “The tertiary sector is projected to grow by 4.9 percent compared to 0.9 percent in January 2022 and accounting for 2.6% percentage points to the overall growth. The tertiary sector will also benefit from the continuous recovery of the tourism sector, provided travel restrictions remain eased. The government is also expected to undertake multi-billion mega projects, which include, the Mkhondvo-Ngwavuma Water Augmented Project, which is earmarked to commence in 2023, coupled with other projects such as the International Convention Centre (ICC) Five Star Hotel, Nhlangano-Sicunusa road among other projects.”
The Minister of Finance Neal Rijkenberg concurred with Gina in a press briefing stating that government contractors and suppliers are expected to be one of the beneficiaries of the increased revenue from SACU. The Finance Minister said this anticipated increased spending on government projects is expected to create a multiplier effect, therefore the entire country will benefit.