mailing address: P. O. Box 333, Maseru 100, Lesotho
telephone: [266] 312666
FAX: [266] 310116
Flag description: 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
Lesotho Economy
Economy - overview: Small, landlocked, and mountainous, Lesotho's primary natural resource is water. Its economy is based on subsistence agriculture, livestock, and remittances from miners employed in South Africa. The number of such mineworkers has declined steadily over the past several years. A small manufacturing base depends largely on farm products that support the milling, canning, leather, and jute industries. Agricultural products are exported primarily to South Africa. Proceeds from membership in a common customs union with South Africa form the majority of government revenue. 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, generating royalties for Lesotho. The pace of substantial privatization has increased in recent years. In December 1999, the government embarked on a nine-month IMF staff-monitored program aimed at structural adjustment and stabilization of macroeconomic fundamentals. The government is in the process of applying for a three-year successor program with the IMF under its Poverty Reduction and Growth Facility.
GDP: purchasing power parity - $5.1 billion (2000 est.)
GDP - real growth rate: 2.5% (2000 est.)
GDP - per capita: purchasing power parity - $2,400 (2000 est.)
GDP - composition by sector: agriculture: 18%