Economy Of Lesotho

Economy overview Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue, but the government has strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa, also generating royalties for Lesotho. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries and a rapidly growing apparel-assembly sector. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF.
 
GDP purchasing power parity - $5.583 billion (2004 est.)
 
GDP - real growth rate 4% (2004 est.)
 
GDP - per capita purchasing power parity - $3,000 (2004 est.)
 
GDP - composition by sector
agriculture: 15.3%
industry: 43.3%
services: 41.4% (2004 est.)
 
Investment gross fixed 34.1% of GDP (2004 est.)
 
Population below poverty line 49% (1999)
 
Household income or consumption by percentage share
lowest 10%: 0.9%
highest 10%: 43.4%
 
Distribution of family income - Gini index 56 (1986-87)
 
Inflation rate consumer prices 6.1% (2004 est.)
 
Labor force 838,000 (2000)
 
Labor force by occupation 86% of resident population engaged in subsistence agriculture; roughly 35% of the active male wage earners work in South Africa
 
Unemployment rate 45% (2002)
 
Budget
revenues: $625.4 million
expenditures: $675.2 million, including capital expenditures of $15 million (2004 est.)
 
Public debt  
Agriculture products corn, wheat, pulses, sorghum, barley; livestock
 
Industries food, beverages, textiles, apparel assembly, handicrafts; construction; tourism
 
Industrial production growth rate 15.5% (1999)
 
Electricity production 0 kWh NA kWh; note - electricity supplied by South Africa (2001)
 
Electricity production by source  
Electricity consumption 40 million kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 40 million kWh; note - electricity supplied by South Africa (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 1,500 bbl/day (2001)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves  
Current account balance $-112 million (2004 est.)
 
Exports $450 million f.o.b. (2004 est.)
 
Exports commodities manufactures 75% (clothing, footwear, road vehicles), wool and mohair, food and live animals (2000)
 
Exports partners US 97.6%, Canada 1.5%, France 0.5% (2003)
 
Imports $661 million f.o.b. (2003 est.)
 
Imports commodities food; building materials, vehicles, machinery, medicines, petroleum products (2000)
 
Imports partners Hong Kong 36.6%, Taiwan 36.2%, China 12%, Germany 9.9% (2003)
 
Reserves of foreign exchange gold $460 million (2004 est.)
 
Debt external $735 million (2002)
 
Economic aid recipient $41.5 million (2000)
 
Currency loti (LSL); South African rand (ZAR)
 
Currency code LSL; ZAR
 
Exchange rates maloti per US dollar - 7.5648 (2003), 10.5407 (2002), 8.6092 (2001), 6.9398 (2000), 6.1095 (1999)
 
Fiscal year 1 April - 31 March

 

 

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This information was reproduced in part from the CIA World Fact book.

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