Lesotho gets positive IMF rating

Lesotho is set for positive economic growth and low inflation, according to the International Monetary Fund (IMF), following an official Article IV consultation in May 2014. In a statement issued after the visit, the IMF directors said Lesotho had been experiencing an average real gross domestic product (GDP) growth of 5% a year since 2010, with inflation held to single digit levels. Economic activity is expected to be supported by large public investment projects, including the second phase of the Lesotho Highland Water Project. “The outlook is positive, but the economy faces risks from the volatility of revenues from the Southern African Customs Union, while unemployment remains high and poverty widespread,” say the directors in their statement.