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 (recently equal to about 45% of GDP). The great majority of households gain their livelihoods from subsistence farming and migrant labor; a large portion of the adult male workforce is employed in South African mines. Manufacturing depends largely on farm products to support the milling, canning, leather, and jute industries; other industries include textile, clothing, and construction (in particular, a major water improvement project which will permit the sale of water to South Africa). Industry's share of GDP rose from 6% in 1982 to 13% in 1991.

National product: GDP - purchasing power equivalent - $2.8 billion (1993 est.)

National product real growth rate: 2.4% (FY 93)

National product per capita: $1,500 (1993 est.)

Inflation rate (consumer prices): 17% (FY93)

Unemployment rate: at least 55% among adult males (1991 est.)

Budget:
revenues: $438 million
expenditures: $430 million, including capital expenditures of $155 million (1994 est.)

Exports: $109 million (f.o.b., 1992)
commodities: wool, mohair, wheat, cattle, peas, beans, corn, hides, skins, baskets
partners: South Africa 42%, EC 28%, North and South America 25% (1991)

Imports: $964 million (c.i.f., 1992)
commodities: mainly corn, building materials, clothing, vehicles, machinery, medicines, petroleum
partners: South Africa 94%, Asia 3%, EC 1% (1991)

External debt: $428 million (1991)

Industrial production: growth rate 5% (1991 est.); accounts for 13% of GDP

Electricity: power supplied by South Africa

Industries: food, beverages, textiles, handicrafts, tourism

Agriculture: accounts for 15% of GDP (1991 est.) and employs 60-70% of all households; exceedingly primitive, mostly subsistence farming and livestock; principal crops corn, wheat, pulses, sorghum, barley

Economic aid:
recipient: US commitments, including Ex-Im (FY70-89), $268 million; US (1992), $10.3 million; US (1993 est.), $10.1 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $819 million; OPEC bilateral aid (1979-89), $4 million; Communist countries (1970-89), $14 million

Currency: 1 loti (L) = 100 lisente
Exchange rates: maloti (M) per US$1 - 3.4096 (January 1994), 3.2636 (1993), 2.8497 (1992), 2.7563 (1991), 2.5863 (1990), 2.6166 (1989); note - the Basotho loti is at par with the South African rand

Fiscal year: 1 April - 31 March

NOTE: The information regarding Lesotho on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Lesotho Economy 1995 information contained here. All suggestions for corrections of any errors about Lesotho Economy 1995 should be addressed to the CIA.