Flag: divided diagonally from the lower hoist side corner; the upper half is white bearing the brown silhouette of a large shield with crossed spear and club; the lower half is a diagonal blue band with a green triangle in the corner
Economy ———-
Economic overview: Small, landlocked, and mountainous, Lesotho has no important natural resources other than water. Its economy is based on agriculture, light manufacturing, and remittances from laborers employed in South Africa (these remittances supplement domestic income by as much as 45%). The great majority of households gain their livelihoods from subsistence farming and migrant labor; a large portion of the adult male work force is employed in South African mines. Manufacturing depends largely on farm products which support the milling, canning, leather, and jute industries. Although drought has decreased agricultural activity over the past few years, improvement of a major hydropower facility will permit the sale of water to South Africa and will support the economy's continued expansion.
GDP: purchasing power parity - $2.8 billion (1994 est.)
GDP real growth rate: 13.5% (1994 est.)
GDP per capita: $1,430 (1994 est.)
GDP composition by sector: agriculture: 10.4% industry: 48.8% services: 40.8% (1993)
Inflation rate (consumer prices): 9.5% (January 1995)
Labor force: 689,000 economically active by occupation: 86.2% of resident population engaged in subsistence agriculture; roughly 60% of the active male wage earners work in South Africa
Unemployment rate: substantial unemployment and underemployment