Economy-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 miners employed in South Africa. The number of such mine workers has declined steadily over the past five years; in 1996 their remittances added about 33% to GDP compared with the addition of roughly 67% in 1990. Manufacturing depends largely on farm products which support the milling, canning, leather, and jute industries. Recent foreign investments will enable Lesotho to export garments made from imported textiles. Although drought has decreased agricultural activity over the past few years, completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa and will support the economy's continued expansion. The pace of the privatization of state-owned firms increased toward the end of 1994.
GDP: purchasing power parity-$5.1 billion (1997 est.)
GDP-real growth rate: 9% (1997 est.)
GDP-per capita: purchasing power parity-$2,500 (1997 est.)
GDP-composition by sector: agriculture: 10% industry: 53% services: 37% (1997)
Inflation rate-consumer price index: 8.7% (1996 est.)
Labor force: total: 689,000 economically active by occupation: 86% of resident population engaged in subsistence agriculture; roughly 35% of the active male wage earners work in South Africa
Unemployment rate: substantial unemployment and underemployment effecting more than half of the labor force (1996 est.)
Budget: revenues: $507 million expenditures: $487 million, including capital expenditures of $170 million (FY96/97 est.)
Industries: food, beverages, textiles, handicrafts; construction; tourism