In-Depth Analysis
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.
We have adjusted our GDP growth forecast for 2018 lower from 2.9% to 1.7%, mainly because of disappointing economic performance in South Africa that is expected to lead to weak Southern African Customs Union (Sacu) revenue growth – a key source of government income – and lower worker remittance inflows during the short term. While the global growth outlook also remains uncertain and risks are mounting, Lesotho’s medium-term economic prospects suggest an uptick in real economic activity underpinned by strong performances in diamond mining and construction activities associated with Phase II of the Lesotho Highlands Water Project. (Source: Lesotho Quarterly Update, published October 2018.)
Macroeconomic Data
(2017)
|
Fiscal Balance (as a % of GDP) |
-6.9 |
|
Consumer Price Index (% change y-o-y, avg) |
5.3 |
|
Current Account Balance (as a % of GDP) |
-6.1 |
|
Real GDP (annual % change) |
3.1 |
|
GDP per Capita, US$ |
1,206 |
|
Import Cover (months) |
3.6 |
|
Population, million |
2.2 |
| Total External Debt (as a % of GDP) |
34.3 |