In-Depth Analysis
Lesotho
The kingdom’s economy is heavily dependent on that of South Africa and the US. The primary sector has increased its contribution to GDP through the rise of mining operations since 2004, while the secondary sector has declined due to the clothing and textiles subsector losing competitiveness against Asian peers. The economy has been under pressure of late, largely tied to a dismal performance in South Africa.
We have revised our outlook for economic growth downwards to 2.5% in 2021, compared with our previous forecast of 3.8%, due to the tightening of lockdown restrictions which will place the balance sheets of businesses and households under pressure. In addition, the South African economy’s better-than-expected start to the year and positive momentum have been erased by the recent unrest and containment measures put in place to limit Covid-19 infections. Lesotho remains dependent on its bigger neighbour for trade, investment, Sacu receipts, and remittances. (Source: Lesotho Annual Country Profile, published July 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-8.3 |
|
Consumer Price Index (% change y-o-y, avg) |
5.0 |
|
Current Account Balance (as a % of GDP) |
-7.0 |
|
Real GDP (annual % change) |
-9.7 |
|
GDP per Capita, US$ |
876.9 |
|
Import Cover (months) |
4.58 |
|
Population, million |
2.1 |
| Total External Debt (as a % of GDP) |
52.8 |