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 ($153 million in 1989). The great majority of households gain their livelihoods from subsistence farming and migrant labor. Manufacturing depends largely on farm products to support the milling, canning, leather, and jute industries; other industries include textile, clothing, and light engineering. Industry's share of GDP rose from 6% in 1982 to 15% in 1989. Political and economic instability in South Africa raise uncertainties for Lesotho's economy, especially with respect to migrant worker remittances--over one-third of GDP.

GDP: $420 million, per capita $240; real growth rate 4.0% (1990 est.)

Inflation rate (consumer prices): 15% (1990 est.)

Unemployment rate: 23% (1988)

Budget: revenues $280 million; expenditures $288 million, including capital expenditures of $NA (FY92 est.)

Exports: $66 million (f.o.b., 1989); commodities--wool, mohair, wheat, cattle, peas, beans, corn, hides, skins, baskets; partners--South Africa 53%, EC 30%, North and South America 13% (1989)

Imports: $499 million (f.o.b., 1989); commodities--mainly corn, building materials, clothing, vehicles, machinery, medicines, petroleum, oil, and lubricants; partners--South Africa 95%, EC 2% (1989)

External debt: $370 million (December 1990 est.)

Industrial production: growth rate 7.8% (1989 est.); accounts for 15% of GDP

Electricity: power supplied by South Africa

Industries: food, beverages, textiles, handicrafts, tourism

Agriculture: accounts for 18% of GDP and employs 60-70% of all households; exceedingly primitive, mostly subsistence farming and livestock; principal crops are corn, wheat, pulses, sorghum, barley

Economic aid: US commitments, including Ex-Im (FY70-89), $268 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-88), $754 million; OPEC bilateral aid (1979-89), $4 million; Communist countries (1970-89), $14 million

Currency: loti (plural--maloti); 1 loti (L) = 100 lisente

Exchange rates: maloti (M) per US$1--2.5625 (January 1991), 2.5863 (1990), 2.6166 (1989), 2.2611 (1988), 2.0350 (1987), 2.2685 (1986), 2.1911 (1985); 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 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Lesotho Economy 1991 information contained here. All suggestions for corrections of any errors about Lesotho Economy 1991 should be addressed to the CIA.