Lesotho
The Mountain Kingdom's sometimes disruptive political dynamics are a perennial concern. The economy is not highly developed and remains highly dependent on neighbouring South Africa.
Storms are brewing on the political front, with yet another coalition government on the brink of collapse. Prime Minister Tom Thabane’s All Basotho Convention leads a faltering coalition government racked by infighting. Political instability and increased tensions across labour, politics, and a crumbling coalition point to difficult times ahead. Conditions remain fairly stable on the economic side, but we have revised the GDP growth rate slightly lower to 2.2% in 2019 to reflect fresh political instability and depressed regional demand. That said, we are still confident that Lesotho’s short- to medium-term economic prospects suggest an uptick in real economic activity driven by Phase II of the Lesotho Highlands Water Project. (Source: Lesotho Annual Country Profile, published July 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-6.4 |
|
Consumer Price Index (% change y-o-y, avg) |
4.7 |
|
Current Account Balance (as a % of GDP) |
-2.5 |
|
Real GDP (annual % change) |
1.9 |
|
GDP per Capita, US$ |
1,341.9 |
|
Import Cover (months) |
3.8 |
|
Population, million |
2.1 |
| Total External Debt (as a % of GDP) |
38.5 |