Maseru, Sept. 13 — The International Monetary Fund (IMF) says Lesotho’s GDP growth has improved modestly, picking up to 2.2 percent in the fiscal year ending in March 2024.
The IMF in its 2024 Article IV Consultation indicates that inflation increased in the second half of 2023, peaking at 8.2 percent in January 2024, but upward pressures have eased, and inflation has since fallen to 6.5 percent in June.
The report further notes that the outlook for Lesotho’s fiscal and external balances has improved significantly owing to windfall transfers from the Southern African Customs Union (SACU) and renegotiated water royalties adding that in this context, and amid Lesotho’s sizable development needs, a key challenge for the authorities will be to ensure that this revenue is saved wisely and spent strategically.
Furthermore, the IMF says this largely reflects accelerated construction from the Lesotho Highlands Water Project, noting that nonetheless, unemployment remains high, diamond and textile exports have been sluggish, and an exceptional dry season increased food-security concerns across the country. . .
