Lesotho: economy

What is the inflation rate in Lesotho?

Lesotho's annual inflation rate was 2.6% in August 2026, according to the Consumer Price Index report of the Lesotho Bureau of Statistics. Prices were unchanged from July.

Transport prices rose 12.2% over the year and added 1.3 percentage points to the total. Clothing and footwear rose 5.0% and restaurants and hotels 5.2%, while food and non-alcoholic beverages, the largest item in the basket with a weight of 32.6%, fell 0.1%. The index uses 2022 as its base year and weights from the 2017/18 Household Budget Survey. In its statement of 24 September 2026, the Central Bank of Lesotho projects inflation to rise to 4.7% in 2027, mainly because of higher food prices.

Official sources: Bureau of Statistics: CPI report, August 2026 (ZIP with PDF) · Central Bank of Lesotho: MPC statement, 24 September 2026 (PDF)

What is the Central Bank of Lesotho interest rate?

The CBL Rate is 7.00% a year after the Central Bank of Lesotho raised it by 0.25 percentage points on 24 September 2026, according to the statement of its Monetary Policy Committee. Commercial banks' prime lending rate stood at 10.5%, according to the bank's home page.

The committee said the rate keeps a gap of 0.25 points below the South African Reserve Bank's policy rate of 7.25%, which had just been raised, and that this gap is enough to sustain the exchange-rate peg. Net international reserves were US$1,209 million on 18 September 2026, US$139 million above the target floor of US$1,070 million, and covered 5.6 months of imports in the second quarter of 2026.

Official sources: Central Bank of Lesotho: MPC statement, 24 September 2026 (PDF) · Central Bank of Lesotho: home page indicators

Is Lesotho's economy growing?

Lesotho's real GDP grew 2.82% in the first quarter of 2026 compared with a year earlier, according to the text of the Quarterly GDP report of the Lesotho Bureau of Statistics, and the bureau's home page shows 2.8%. The heading on the same page of the report gives 3.6%.

Eleven of fifteen industries grew. Business services rose 10.3%, finance and insurance 10.1% and hotels and restaurants 9.7%, while other services fell 5.4%. GDP at current prices was M11,524 million in the quarter. The Central Bank of Lesotho's September 2026 statement expects growth to remain modest in 2026, citing a weak labour market, subdued domestic demand and problems in mining.

Official sources: Bureau of Statistics: Quarterly GDP report, Q1 2026 (ZIP with PDF) · Bureau of Statistics: key indicators · Central Bank of Lesotho: MPC statement, 24 September 2026 (PDF)

What does Lesotho export and import?

Lesotho imported goods worth M8,052 million and exported M3,900 million in the second quarter of 2026, a trade deficit of M4,152 million, according to the Foreign Trade Statistics Report of the Lesotho Bureau of Statistics.

The main exports were clothing and footwear, bulk water and diamonds. South Africa took 72.6% of exports, the United States 13.7% and Belgium 11.1%. South Africa supplied 82.2% of imports, mainly food and beverages, fuel, and electrical machinery and equipment. The figures cover goods only, so they leave out services and the money Basotho working abroad send home.

Official sources: Bureau of Statistics: Foreign Trade Statistics Report, Q2 2026 (ZIP with PDF)

What is the exchange rate of the loti?

One US dollar was worth 16.47 maloti on 13 October 2026, according to the exchange rates on the Central Bank of Lesotho's home page. The same table gave 21.80 maloti per British pound and 18.43 per euro.

The loti is held under an exchange-rate peg, and the central bank sets its policy rate relative to the South African Reserve Bank's rate to sustain it. The bank also holds net international reserves above a target floor, which was US$1,070 million in September 2026, according to its Monetary Policy Committee statement.

Official sources: Central Bank of Lesotho: exchange rates · Central Bank of Lesotho: MPC statement, 24 September 2026 (PDF)

What is Lesotho's GDP per capita?

Lesotho's GDP per capita was US$1,089 in 2025, according to the World Bank, up from US$1,023 in 2024 and US$921 in 2023.

The figure divides GDP in current US dollars by a population of about 2.36 million. Because it is in dollars, it moves with the rand-linked loti as well as with output. Money sent home by Basotho working abroad is not part of GDP; personal remittances were equal to 20.8% of GDP in 2025, according to the World Bank. The Bureau of Statistics publishes GDP in maloti in its annual national accounts.

Official sources: World Bank: GDP per capita, Lesotho · World Bank: Personal remittances received, Lesotho

Is Lesotho's economy growing?

In 2025, real GDP growth in Lesotho was 2.0%, according to the World Bank. Since 2005 it has ranged from -8.2% (2020) to 6.3% (2012). Sub-Saharan Africa median: 4.6%; Lesotho is 39th highest of 46. Worldwide: 130th of 180.

What is Lesotho's GDP per person?

The latest figure from the World Bank, for 2025, is $1,089. Since 2005 it has ranged from $861 (2007) to $1,281 (2011). It is 33rd highest of 46 in Sub-Saharan Africa, where the median is $1,351. World rank, highest first: 167th of 180.

How does Lesotho's income per person compare after prices?

According to the World Bank, GDP per person at purchasing power parity in Lesotho was $3,184 in international dollars in 2025. No year since 2005 has been higher. It is 34th highest of 46 in Sub-Saharan Africa, where the median is $4,425 in international dollars. World rank, highest first: 165th of 179.

How big are Lesotho's exports?

49.5% of GDP: that is exports of goods and services in Lesotho for 2025, according to the World Bank. The peak was 53.2% of GDP in 2007 and the low 38.1% of GDP in 2014. Across Sub-Saharan Africa the middle value was 26.1% of GDP, and Lesotho placed 4th highest of 38. Worldwide: 36th of 133.

Does Lesotho have a current account surplus or deficit?

According to the IMF, the current account balance in Lesotho was 0.1% of GDP in 2025. Since 2005 it has ranged from -18.8% of GDP (2012) to 18.1% of GDP (2007). It is 7th highest of 20 in Sub-Saharan Africa, where the median is -3.6% of GDP. World rank, highest first: 53rd of 132.

What is FDI in Lesotho?

In 2025, net inflows of foreign direct investment in Lesotho was 1.3% of GDP, according to the IMF. Its high point since 2005 was 2017, at 5.9% of GDP; its low point was 2019, at -2.4% of GDP. Across Sub-Saharan Africa the middle value was 2.0% of GDP, and Lesotho placed 34th highest of 46. Of 179 countries with 2025 data, 117th highest.

What interest rate do banks charge in Lesotho?

In 2024, the average bank lending rate in Lesotho was 11.2%, according to the IMF. The peak was 16.2% in 2008 and the low 8.2% in 2021. Across Sub-Saharan Africa the middle value was 16.0%, and Lesotho placed 17th highest of 23. Of 89 countries with 2024 data, 38th highest.