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. 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 a rapidly expanding apparel-assembly sector. The latter has grown
significantly mainly due to Lesotho qualifying for the trade
benefits contained in the Africa Growth and Opportunity Act. 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. In July 2007, Lesotho
signed a Millennium Challenge Account Compact with the US worth
$362.5 million.

GDP (purchasing power parity):

$3.063 billion (2007 est.)

GDP (official exchange rate):

$1.6 billion (2007 est.)

GDP - real growth rate:

4.8% (2007 est.)

GDP - per capita (PPP):

$1,400 (2007 est.)

GDP - composition by sector:

agriculture: 15.2%
industry: 45%
services: 39.7% (2007 est.)

Labor force:

838,000 (2000 est.)

Labor force - by occupation:

agriculture: 86% of resident population engaged in subsistence
agriculture; roughly 35% of the active male wage earners work in
South Africa
industry and services: 14% (2002 est.)

Unemployment rate:

45% (2002)

Population below poverty line:

49% (1999)

Household income or consumption by percentage share:

lowest 10%: 0.9%
highest 10%: 43.4% (2002 est.)

Distribution of family income - Gini index:

63.2 (1995)

Investment (gross fixed):

51.9% of GDP (2007 est.)

Budget:

revenues: $779.9 million
expenditures: $696.9 million (2007 est.)

Fiscal year:

1 April - 31 March

Inflation rate (consumer prices):

8% (2007 est.)

Central bank discount rate: