Lesotho (Marulelo a Africa) Economy - overview: Small, landlocked, and mountainous, Lesotho relies on remittances from Basotho employed in South Africa, customs duties from the Southern Africa Customs Union (SACU), and export revenue for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 permitted the sale of water to South Africa and generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. 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, as well as an apparel-assembly sector. Despite Lesothos market-based economy being heavily tied to its neighbor South Africa, the US is an important trade partner because of the export sectors heavy dependence on apparel exports. Exports have grown significantly because of the trade benefits contained in the Africa Growth and Opportunity Act. Most of the labor force is engaged in subsistence agriculture, especially livestock herding, 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. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million. Economic growth dropped in 2009, due mainly to the effects of the global economic crisis as demand for the countrys exports declined and SACU revenue fell precipitously when South Africa - the primary contributor to the SACU revenue pool - went into recession, but growth exceeded 4% per year in 2010-12. Growth is expected to increase due to major infrastructure projects, but Lesothos weak manufacturing and agriculture sectors continue to hamper growth. GDP (purchasing power parity): $3.945 billion (2012 est.) country comparison to the world: 173 $3.784 billion (2011 est.) $3.606 billion (2010 est.) note: data are in 2012 US dollars [see also: GDP country ranks ] GDP (official exchange rate): $2.62 billion (2012 est.) [see also: GDP (official exchange rate) country ranks ] GDP - real growth rate: 4.3% (2012 est.) country comparison to the world: 76 4.9% (2011 est.) 5.2% (2010 est.) [see also: GDP - real growth rate country ranks ] GDP - per capita: $2,000 (2012 est.) country comparison to the world: 193 $1,900 (2011 est.) $1,900 (2010 est.) note: data are in 2012 US dollars [see also: GDP - per capita country ranks ] GDP - composition by sector: agriculture: 6.7% [see also: GDP - composition by sector - agriculture country ranks ] industry: 34.6% services: 58.7% (2012 est.) Labor force: 854,600 (2007 est.) country comparison to the world: 146 [see also: Labor force country ranks ] Labor force - by occupation: agriculture: 86% [see also: Labor force - by occupation - agriculture country ranks ] industry and services: 14% note: most of resident population engaged in subsistence agriculture; roughly 35% of the active male wage earners work in South Africa (2002 est.) Unemployment rate: 45% (2002) country comparison to the world: 190 [see also: Unemployment rate country ranks ] Population below poverty line: 49% (1999) [see also: Population below poverty line country ranks ] Household income or consumption by percentage share: lowest 10%: 1% [see also: Household income or consumption by percentage share - lowest 10% country ranks ] highest 10%: 39.4% (2003) Distribution of family income - Gini index: 63.2 (1995) country comparison to the world: 3 56 (1986-87) [see also: Distribution of family income - Gini index country ranks ] Investment (gross fixed): 36.6% of GDP (2012 est.) country comparison to the world: 8 [see also: Investment (gross fixed) country ranks ] Budget: revenues: $1.655 billion [see also: Budget revenues country ranks ] expenditures: $1.68 billion (2012 est.) Taxes and other revenues: 63.2% of GDP (2012 est.) country comparison to the world: 9 [see also: Taxes and other revenues country ranks ] Budget surplus (+) or deficit (-): -0.9% of GDP (2012 est.) country comparison to the world: 55 [see also: Budget surplus (+) or deficit (-) country ranks ] Inflation rate (consumer prices): 6.1% (2012 est.) country comparison to the world: 161 5% (2011 est.) [see also: Inflation rate (consumer prices) country ranks ] Central bank discount rate: 10% (31 December 2010 est.) country comparison to the world: 23 10.66% (31 December 2009 est.) [see also: Central bank discount rate country ranks ] Commercial bank prime lending rate: 13% (31 December 2012 est.) country comparison to the world: 87 10.4% (31 December 2011 est.) [see also: Commercial bank prime lending rate country ranks ] Stock of narrow money: $378.6 million (31 December 2012 est.) country comparison to the world: 165 $346.5 million (31 December 2011 est.) [see also: Stock of narrow money country ranks ] Stock of broad money: $897 million (31 December 2012 est.) country comparison to the world: 171 $820.4 million (31 December 2011 est.) [see also: Stock of broad money country ranks ] Stock of domestic credit: $82.19 million (31 December 2011 est.) country comparison to the world: 187 $60.61 million (31 December 2010 est.) [see also: Stock of domestic credit country ranks ] Agriculture - products: corn, wheat, pulses, sorghum, barley; livestock Industries: food, beverages, textiles, apparel assembly, handicrafts, construction, tourism Industrial production growth rate: 3% (2010 est.) country comparison to the world: 105 [see also: Industrial production growth rate country ranks ] Current account balance: -$352.6 million (2012 est.) country comparison to the world: 91 -$521.5 million (2011 est.) [see also: Current account balance country ranks ] Exports: $1.039 billion (2012 est.) country comparison to the world: 156 $1.003 billion (2011 est.) [see also: Exports country ranks ] Exports - commodities: manufactures 75% (clothing, footwear, road vehicles), wool and mohair, food and live animals Imports: $2.469 billion (2012 est.) country comparison to the world: 158 $2.306 billion (2011 est.) [see also: Imports country ranks ] Imports - commodities: food; building materials, vehicles, machinery, medicines, petroleum products Reserves of foreign exchange and gold: $1.089 billion (31 December 2012 est.) country comparison to the world: 133 $1.109 billion (31 December 2011 est.) [see also: Reserves of foreign exchange and gold country ranks ] Debt - external: $715.4 million (31 December 2012 est.) country comparison to the world: 166 $729.5 million (31 December 2011 est.) [see also: Debt - external country ranks ] Stock of direct foreign investment - at home: $242 million (31 December 2012 est.) country comparison to the world: 100 $120 million (31 December 2011 est.) [see also: Stock of direct foreign investment - at home country ranks ] Exchange rates: maloti (LSL) per US dollar - 8.095 (2012 est.) 7.26 (2011 est.) 7.32 (2010 est.) 8.47 (2009) 7.75 (2008) Fiscal year: 1 April - 31 March NOTE: The information regarding Lesotho on this page is re-published from the 2013 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Lesotho Economy 2013 information contained here. All suggestions for corrections of any errors about Lesotho Economy 2013 should be addressed to the CIA.
Posted on: Sat, 16 Nov 2013 08:53:34 +0000
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