In-Depth Analysis
Lesotho
The Mountain Kingdom's sometimes disruptive political dynamics are a perennial concern. The economy is not highly developed and is immeasurably volatile to economic and political developments in exchange-rate-pegged South Africa.
Beyond the sluggish growth experienced in the first three quarters of 2019, continued economic and political instability in South Africa, coupled with slow regional demand, weighed on Lesotho’s economy and affected revenue inflow from the Southern African Customs Union (Sacu). Economic growth is estimated at 0.7% in 2019 but expected to improve to 1.7% in 2020. Our growth outlook has deteriorated slightly due to the poor performance of key sectors as well as delayed construction on key projects. Meanwhile, Lesotho’s political landscape has plunged headlong into yet another crisis in recent months. (Source: Lesotho Quarterly Update, published February 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-3.0 |
|
Consumer Price Index (% change y-o-y, avg) |
5.3 |
|
Current Account Balance (as a % of GDP) |
-3.8 |
|
Real GDP (annual % change) |
0.7 |
|
GDP per Capita, US$ |
1,155.1 |
|
Import Cover (months) |
4.2 |
|
Population, million |
2.1 |
| Total External Debt (as a % of GDP) |
39.1 |