Economic overview Lesotho, in 36 editions.

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. Subsistence farming is the principal occupation for about 86% Africa ($153 million in 1989). The great majority of the domestic labor force households gain their livelihoods from subsistence farming and accounts for about 20% of GDP. 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 total GDP rose from 6% in 1982 to 10.5% 15% in 1987. During the period 1985-87 real GDP growth averaged 2.9% per year, only slightly above the population growth rate. In FY89 per capita GDP was only $245 1989. Political and nearly 25% economic instability in South Africa raise uncertainties for Lesotho's economy, especially with respect to migrant worker remittances--over one-third of the labor force was unemployed. GDP.

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 raises uncertainty for Lesotho's
economy, especially with respect to migrant worker remittances--over one-third remittances - typically
about 40% of GDP.

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 ($439
million in 1989). 1991). 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. 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 15% in 1989.
Political and
economic instability in South Africa raises uncertainty for Lesotho's
Lesotho's economy, especially with respect to migrant worker remittances - typically
about 40% recently the equivalent of GDP. nearly three-fourths of domestic output.

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 ($439
million in 1991). (recently equal to about 45% of GDP). The great majority of households
gain their livelihoods
from subsistence farming and migrant labor. 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 15% in 1989.
Political and economic instability 13% in South Africa raises uncertainty for
Lesotho's economy, especially with respect to migrant worker remittances -
recently the equivalent of nearly three-fourths of domestic output. 1991.

Small, landlocked, and mountainous, Lesotho has no important natural
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
(recently equal to about 45% of GDP). 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 workforce work force 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 construction. Although drought has
water decreased agricultural activity over the past few years, improvement project which
of a major hydropower facility will permit the sale of water to South
Africa). Industry's share of GDP rose from 6% in 1982 Africa and allow Lesotho's economy to 13% in 1991. continue its moderate growth.

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
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
large portion of the adult male work force is employed in South African
African mines. Manufacturing depends largely on farm products to which
support the
milling, canning, leather, and jute industries; other industries
include textile, clothing, and construction. industries. Although
drought has
decreased agricultural activity over the past few years, improvement
improvement of a major hydropower facility will permit the sale of
water to South
Africa and allow Lesotho's economy to continue its moderate growth. will support the economy's continued
expansion.

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 miners employed
in South Africa (these Africa. The number of such mine workers has declined steadily
over the past five years; in 1996 their remittances supplement added about 33% to
domestic income by as much as 45%). GDP compared with the addition of roughly 67% in 1990. 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 completion of a major hydropower facility will
permit 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.

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. 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. 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 will in January 1998 now permits
permit 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.

Small, landlocked, and mountainous, Lesotho has no Lesotho's
only important natural resources other than resource is water. Its economy is based on
subsistence agriculture, light manufacturing, livestock, and remittances from miners employed
employed in South Africa. The number of such mine workers has
declined steadily
over the past five years; in several years. In 1996 their
remittances added about 33% to
GDP compared with the addition of
roughly 67% in 1990. Manufacturing
A small manufacturing base depends largely on
farm products which support the milling, canning,
leather, and jute industries. Recent foreign investments will enable
Lesotho industries. Agricultural products are exported primarily to export garments made South
Africa. Proceeds from imported textiles. 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
permits the sale of water to South Africa and will support the economy's Africa, generating royalties that
continued expansion. will be an important source of income for Lesotho. The pace of the
parastatal privatization has increased in recent years. Civil
disorder in September 1998 destroyed 80% of state-owned the commercial
infrastructure in Maseru and two other major towns. Most firms increased toward were
not covered by insurance, and the end rebuilding of 1994. small and medium
business will be a significant challenge in terms of both economic
growth and employment levels.

Small, landlocked, and mountainous, Lesotho's
only important natural resource is water. Its economy is based on
subsistence agriculture, livestock, and remittances from miners
employed in South Africa. The number of such mine workers has
declined steadily over the past several years. In 1996 their
remittances added about 33% to GDP compared with the addition of
roughly 67% in 1990. A small manufacturing base depends largely on
farm products which 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 that
will be an important source of income for Lesotho. The pace of
parastatal privatization has increased in recent years. Civil
disorder in September 1998 destroyed 80% of the commercial
infrastructure in Maseru and two other major towns. Most firms were
not covered by insurance, and the rebuilding of small and medium
business will be has been a significant challenge in terms of both economic
growth and employment levels. Output dropped 10% in 1998 and recovered slowly in 1999.

Small, landlocked, and mountainous, Lesotho's only important 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 mine workers mineworkers has declined steadily over the past several years. In 1996 their remittances added about 33% to GDP compared with the addition of roughly 67% in 1990. A small manufacturing base depends largely on farm products which 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 that will be an important source of income for Lesotho. The pace of parastatal substantial privatization has increased in recent years. Civil disorder in September 1998 destroyed 80% of In December 1999, the commercial infrastructure in Maseru and two other major towns. Most firms were not covered by insurance, government embarked on a nine-month IMF staff-monitored program aimed at structural adjustment and the rebuilding stabilization of small and medium business has been a significant challenge macroeconomic fundamentals. The government is in terms the process of both economic growth and employment levels. Output dropped 10% in 1998 applying for a three-year successor program with the IMF under its Poverty Reduction and recovered slowly in 1999. Growth Facility.

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. Africa, and a rapidly growing apparel-assembly sector. 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. Lesotho has a marked inequality in income distribution and serious unemployment/underemployment problems that will not yield to short-run solutions.

Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue, but the government has strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa, also generating royalties for Lesotho. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries and a rapidly growing apparel-assembly sector. The garment industry has grown significantly, mainly due to Lesotho qualifying for the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF.

Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue, but revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa, also generating royalties for Lesotho. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries and industries, as well as a rapidly growing expanding apparel-assembly sector. The garment industry latter has grown significantly, mainly due to Lesotho qualifying for the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF.

Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa, Africa and also generating generates royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as a rapidly expanding apparel-assembly sector. The latter has grown significantly, significantly mainly due to Lesotho qualifying for the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF.

Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits permitted the sale of water to South Africa and also generates generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as a rapidly expanding apparel-assembly sector. The latter has grown significantly mainly due to Lesotho qualifying for the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million.

Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and Africa, customs duties from the Southern Africa Customs Union (SACU), and export revenue for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 permitted the sale of water to South Africa and generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as a rapidly expanding an apparel-assembly sector. The latter has Despite Lesotho's market-based economy being heavily tied to its neighbor South Africa, the US is an important trade partner because of the export sector's heavy dependence on apparel exports. Exports have grown significantly mainly due to Lesotho qualifying for because of the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million. Economic growth dropped in 2009, due mainly to the effects of the global economic crisis as demand for the country's exports declined and SACU revenue fell precipitously when South Africa - the primary contributor to the SACU revenue pool - went into recession, but growth returned to 3.5% in 2010.

Small, landlocked, and mountainous, Lesotho relies on remittances from miners Basotho employed in South Africa, customs duties from the Southern Africa Customs Union (SACU), and export revenue for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 permitted the sale of water to South Africa and generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as an apparel-assembly sector. Despite Lesotho's market-based economy being heavily tied to its neighbor South Africa, the US is an important trade partner because of the export sector's heavy dependence on apparel exports. Exports have grown significantly because of the trade benefits contained in the Africa Growth and Opportunity Act. The economy Most of the labor force is still primarily based on engaged in subsistence agriculture, especially livestock, livestock herding, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million. Economic growth dropped in 2009, due mainly to the effects of the global economic crisis as demand for the country's exports declined and SACU revenue fell precipitously when South Africa - the primary contributor to the SACU revenue pool - went into recession, but growth returned to 3.5% in 2010.

Small, landlocked, and mountainous, Lesotho relies on remittances from Basotho employed in South Africa, customs duties from the Southern Africa Customs Union (SACU), and export revenue for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 permitted the sale of water to South Africa and generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as an apparel-assembly sector. Despite Lesotho's market-based economy being heavily tied to its neighbor South Africa, the US is an important trade partner because of the export sector's heavy dependence on apparel exports. Exports have grown significantly because of the trade benefits contained in the Africa Growth and Opportunity Act. Most of the labor force is engaged in subsistence agriculture, especially livestock herding, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million. Economic growth dropped in 2009, due mainly to the effects of the global economic crisis as demand for the country's exports declined and SACU revenue fell precipitously when South Africa - the primary contributor to the SACU revenue pool - went into recession, but growth returned to 3.5% exceeded 4% per year in 2010. 2010-12. Growth is expected to increase due to major infrastructure projects, but Lesotho's weak manufacturing and agriculture sectors continue to hamper growth.

Small, mountainous, and completely landlocked by South Africa, Lesotho is a least developed country in which about three-fourths of the people live in rural areas and engage in subsistence agriculture. Lesotho produces less than 20% of the nation's demand for food. Rain-fed agriculture is vulnerable to weather and climate variability; an estimated 725,500 people will require food assistance in 2012/13. The distribution of income in Lesotho remains inequitable. Lesotho relies on South Africa for much of its economic activity. Lesotho imports 90% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa, in mines, on farms and as domestic workers, though mining employment has declined substantially since the 1990s. Government revenue depends heavily on transfers from South Africa. Customs duties from the Southern Africa Customs Union accounted for 44% of government revenue in 2012. The South African Government also pays royalties for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers. Access to credit remains a problem for the private sector. The government maintains a large presence in the economy - public expenditures government consumption accounted for 55% 39% of GDP in 2010 2013 and the government remains Lesotho's largest employer. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and may contribute 8.5% to GDP by 2015, according to current forecasts. Lesotho's $362.5 million Millennium Challenge Account Compact, which focused on strengthening the healthcare system, developing the private sector, and providing access to improved water supplies and sanitation facilities, will end in September 2013. Despite the 2008/09 global economic crisis, the economy has recovered strongly with had strong, but declining growth averaging nearly 5% per year since 2010.

Small, mountainous, and completely landlocked by South Africa, Lesotho is depends on a least developed country in which about narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture. agriculture, although Lesotho produces less than 20% of the nation's demand for food. Rain-fed agriculture is vulnerable to weather and climate variability; an estimated 725,500 people will require food assistance in 2012/13. The distribution of income in Lesotho remains inequitable. variability. Lesotho relies on South Africa for much of its economic activity. activity; Lesotho imports 90% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa, in mines, on farms and as domestic workers, though mining employment has declined substantially since the 1990s. Government revenue depends heavily on transfers from South Africa. Customs duties from Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 44% of total government revenue in 2012. 2014. The South African Government also pays royalties for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers. Access to credit remains a problem for the private sector. The government maintains a large presence in the economy - government consumption accounted for 39% 37% of GDP in 2013 2014 and the government remains Lesotho's largest employer. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and may contribute 8.5% to GDP by 2015, according to current forecasts. Lesotho's $362.5 million Millennium Challenge Account Compact, which focused on strengthening the healthcare system, developing the private sector, and providing access to improved water supplies and sanitation facilities, will end in September 2013. Despite the 2008/09 global economic crisis, the economy has had strong, but declining growth since 2010.

Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Rain-fed agriculture Agriculture is vulnerable to weather and climate variability.
Lesotho relies on South Africa for much of its economic activity; Lesotho imports 90% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa, in mines, on farms farms, and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 44% of total government revenue in 2014. The South African Government also pays royalties for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers. Access to credit remains a problem for the private sector.
The government maintains a large presence in the economy - government consumption accounted for 37% of GDP in 2014 and the government remains Lesotho's largest employer. Access to credit remains a problem for the private sector. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and may contribute 8.5% to GDP by 2015, according to current forecasts.

Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Agriculture is vulnerable to weather and climate variability.
Lesotho relies on South Africa for much of its economic activity; Lesotho imports 90% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa, Africa in mines, on farms, and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 44% of total government revenue in 2014. The Lesotho also gains royalties from the South African Government also pays royalties for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers.
The government maintains a large presence in the economy - government consumption accounted for 37% 27% of GDP in 2014 and the 2016. The government remains Lesotho's largest employer. Access employer; in 2014-15, the government wage bill rose to credit remains a problem for 21% of GDP – the private sector. largest in sub-Saharan Africa. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and may contribute 8.5% to accounts for nearly 9% of GDP. Lesotho managed steady GDP by 2015, according growth at an average of 4.5% from 2010 to current forecasts. 2014 but poverty remains widespread around 57% of the total population.

Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Agriculture is vulnerable to weather and climate variability.
Lesotho relies on South Africa for much of its economic activity; Lesotho imports 90% 85% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa in mines, on farms, and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 44% 26% of total government revenue GDP in 2014. 2016; however, SACU revenues are volatile and expected to decline over the next 5 years. Lesotho also gains royalties from the South African Government for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers.
The government maintains a large presence in the economy - government consumption accounted for 27% about 26% of GDP in 2016. 2017. The government remains Lesotho's largest employer; in 2014-15, 2016, the government wage bill rose to 21% 23% of GDP – the largest in sub-Saharan Africa. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and accounts accounted for nearly 9% 35% of GDP. total exports in 2015. Lesotho managed steady GDP growth at an average of 4.5% from 2010 to 2014 2014, dropping to about 2.5% in 2015-16, but poverty remains widespread around 57% of the total population.

Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Agriculture is vulnerable to weather and climate variability. Lesotho relies on South Africa for much of its economic activity; Lesotho imports 85% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa in mines, on farms, and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 26% of total GDP in 2016; however, SACU revenues are volatile and expected to decline over the next 5 years. Lesotho also gains royalties from the South African Government for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers. The government maintains a large presence in the economy - government consumption accounted for about 26% of GDP in 2017. The government remains Lesotho's largest employer; in 2016, the government wage bill rose to 23% of GDP – the largest in sub-Saharan Sub-Saharan Africa. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and accounted for nearly 35% of total exports in 2015. Lesotho managed steady GDP growth at an average of 4.5% from 2010 to 2014, dropping to about 2.5% in 2015-16, but poverty remains widespread around 57% of the total population.

Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Agriculture is vulnerable to weather and climate variability.
Lesotho relies on South Africa for much of its economic activity; Lesotho imports 85% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa in mines, on farms, and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 26% of total GDP in 2016; however, SACU revenues are volatile and expected to decline over the next 5 years. Lesotho also gains royalties from the South African Government for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers.
The government maintains a large presence in the economy - government consumption accounted for about 26% of GDP in 2017. The government remains Lesotho's largest employer; in 2016, the government wage bill rose to 23% of GDP – the largest in Sub-Saharan Africa. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and accounted for nearly 35% of total exports in 2015. Lesotho managed steady GDP growth at an average of 4.5% from 2010 to 2014, dropping to about 2.5% in 2015-16, but poverty remains widespread around 57% of the total population.