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.
Economic activity remained fickle towards the half-year mark, precipitated by weak local demand and compounded by overall weak regional growth. The underperforming South African economy weighs on regional demand. Our forecast for real GDP growth in 2019 stands at 2% – marginally lower than our previous projection of 2.2%. The slight downward revision comes at a period of renewed political uncertainty, with the coalition government looking set to collapse once again. However, Lesotho’s short- to medium-term prospects still suggest an uptick in real economic activity, driven by construction activities under Phase II of the Lesotho Highlands Water Project. (Source: Lesotho Quarterly Update, published October 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) |
-0.2 |
|
Real GDP (annual % change) |
1.9 |
|
GDP per Capita, US$ |
1,342.6 |
|
Import Cover (months) |
3.6 |
|
Population, million |
2.1 |
| Total External Debt (as a % of GDP) |
32.3 |