Small is Beautiful but Vulnerable: The Swazi Economy Aftermath of the Global Financial Crisis, IPRA Working Paper 67

– This paper documents economic trend in Swaziland aftermath of the global economic and financial crisis, establishing that Swaziland’s economy is highly dependent on external market and the country’s growth prospect is largely contingent on developments in South Africa. The declining trend in Swaziland’s growth trajectory has arisen in part from the country’s reliance on revenues from a few primary commodity exports and foreign inflows, and falling revenue from SACU’s revenue sharing pool, which reaffirms both the impact of the global economic crisis and the binding constraints to economic growth and country’s eroding global competitiveness. Government borrowing and the rate of build-up of public debt is directly link to changes in SACU revenue.