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Analysis by Region - Emerging Markets - Lesotho

Publisher Oxford Economics
Published Jul 11, 2025
Length 4 Pages
SKU # OFE20204951

Description

Lesotho's economy was notably weaker than anticipated at the start of the year, declining by 1.6% y/y in Q1. Although a rebound is likely in the second quarter, the impact of US tariffs on Lesotho's manufacturing sector, cuts to US foreign aid focused on investments, and delays in the second phase of the Lesotho Highlands Water Project (LHWP-II) will significantly dampen the country's economic prospects. Based on these factors, we have sharply lowered our real GDP growth forecast for 2025 to 0.5% from the previous estimate of 2.1%.

Table of Contents

4 Pages
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