Maseru, Nov. 27 — The new United States (US) tariffs on exports and ongoing challenges in the textile and mining sectors are major growth impediments, resulting in decline in economic growth by 1.3 percent from the previous 3. 4 percent estimate quoted in the current year budget estimates.
This was revealed by the Minister of Finance and Development Planning Dr. Rets’elisitsoe Matlanyane when unpacking the 2025/2026 mid-term budget review in the joint sitting of Parliament under the theme” Building Strategies for Inclusive Growth”.
Dr. Matlanyane said while increased spending on construction activities related to the second phase of Lesotho Highlands Water Project is expected to provide some stimulus, the above are major growth impediments, saying the growth adjustment reflects a more cautious outlook for the country’s economy in the near term, with a medium-term average growth rate of 1.2 percent.
She added that global economic headwinds have generally proven stronger than anticipated necessitating this downward revision of Gross Domestic Product growth projection, saying this reflects persistent global inflationary pressures, tighter financial conditions and critically, the continued uncertainty surrounding the renewal of the African Growth and Opportunity Act (AGOA).
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