/ 8 March 2001

SWAZILAND RUNS DEFICIT AS DONOR AID DWINDLES

SWAZILAND will run a budget deficit of around 469 million emalangeni in 2001-02 because donor aid has dried up and the wage bill has soared, says Finance Minister Majozi Sithole. He told the House of Assembly that a slight economic recovery was possible this year as more investors are attracted to Swaziland thanks to improved access to US markets. Swaziland’s economic growth rate declined to 2.5% during the 2000 calendar year from 3.7% in 1999, and its annual inflation averaged 7,3%, up from 5.8% during the same time. The resulting deficit totalled around 468.5 million emalangeni, or 4.8% of the country’s gross domestic product (GDP). – AFP

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