Balance of Payments and International FDI Position in eSwatini: FY2019/20

eSwatini’s merchandise export earnings have been volatile since 2016. The fluctuations in export earnings have deteriorated eSwatini’s balance of payments and gross official reserves. The balance of payments deteriorated to a wider deficit due to volatility of the capital and financial account balance and the persistent outward foreign direct investment (FDI) outflows. These capital flows have been adverse for eSwatini’s balance of payments but improved the country’s net international FDI position. eSwatini’s balance of payments is projected to deteriorate to a wider deficit, which is projected to reduce gross official reserves in the medium-term.