Best Countries for Business 2018

Swaziland

the place image

Swaziland

gdp
$4B
gdp growth
1.6%
gdp per capita
$3,200
trade balance/gdp
13.7%
population
1.1M
unemployment
28%
public debt/GDP
28%
inflation
6.2%
As of December 2018
A small, landlocked kingdom, Eswatini (also known as Swaziland) is bordered in the north, west and south by the Republic of South Africa and by Mozambique in the east. Eswatini depends on South Africa for a majority of its exports and imports. Eswatini's currency is pegged to the South African rand, effectively relinquishing Eswatini's monetary policy to South Africa. The government is dependent on customs duties from the Southern African Customs Union (SACU) for almost half of its revenue. Eswatini is a lower middle-income
country. As of 2017, more than one-quarter of the adult population was infected by HIV/AIDS; Eswatini has the world’s highest HIV prevalence rate, a financial strain and source of economic instability. The manufacturing sector diversified in the 1980s and 1990s, but manufacturing has grown little in the last decade. Sugar and soft drink concentrate are the largest foreign exchange earners, although a drought in 2015-16 decreased sugar production and exports. Overgrazing, soil depletion, drought, and floods are persistent problems. Mining has declined in importance in recent years. Coal, gold, diamond, and quarry stone mines are small scale, and the only iron ore mine closed in 2014. With an estimated 28% unemployment rate, Eswatini's need to increase the number and size of small and medium enterprises and to attract foreign direct investment is acute. Eswatini's national development strategy, which expires in 2022, prioritizes increases in infrastructure, agriculture production, and economic diversification, while aiming to reduce poverty and government spending. Eswatini's revenue from SACU receipts are likely to continue to decline as South Africa pushes for a new distribution scheme, making it harder for the government to maintain fiscal balance without introducing new sources of revenue.
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Rankings
Worst
Best
Trade freedom
81
Monetary freedom
115
Property rights
86
Innovation
134
Technology
125
Red tape
138
Investor protection
123
Corruption
77
Personal freedom
142
Tax burden
57
substantial improvement
substantial deterioration
All economic data for 2017.Sources: Heritage Foundation; World Economic Forum; Transparency International; Freedom House; World Bank; Central Intelligence Agency; Property Rights Alliance.
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