my - overview:
Small, landlocked, and mountainous, Lesotho relies on remittances
from miners employed in South Africa and customs duties from the
Southern Africa Customs Union for the majority of government
revenue. However, the government has recently strengthened its tax
system to reduce dependency on customs duties. Completion of a major
hydropower facility in January 1998 now permits the sale of water to
South Africa, also generating royalties for Lesotho. As the number
of mineworkers has declined steadily over the past several years, a
small manufacturing base has developed based on farm products that
support the milling, canning, leather, and jute industries, as well
as a rapidly expanding apparel-assembly sector. The latter has grown
significantly, mainly due to Lesotho qualifying for the trade
benefits contained in the Africa Growth and Opportunity Act. The
economy is still primarily based on subsistence agriculture,
especially livestock, although drought has decreased agricultural
activity. The extreme inequality in the distribution of income
remains a major drawback. Lesotho has signed an Interim Poverty
Reduction and Growth Facility with the IMF.

GDP (purchasing power parity):
$5.195 billion (2006 est.)

GDP (official exchange rate):
$1.419 billion (2006 est.)

GDP - real growth rate:
1.7% (2006 est.)

GDP - per capita (PPP):
$2,600 (2006 est.)

GDP - composition by sector:
agriculture: 16.1%
industry: 43%
services: 40.9% (2006 est.)

Labor force:
838,000 (2000)

Labor force - by occupation:
agriculture: 86% of resident population engaged in subsistence
agriculture; roughly 35% of the active male wage earners work in
South Africa
industry and services: 14%

Unemployment rate:
45% (2002)

Population below poverty line:
49% (1999)

Household income or consumption by percentage share:
lowest 10%: 0.9%
highest 10%: 43.4%

Distribution of family income - Gini index:
63.2 (1995)

Inflation rate (consumer prices):
5% (2006 est.)

Investment (gross fixed):
32% of GDP (2006 est.)

Budget:
revenues: $778.9 million
expenditures: $734.7 million; including capital expenditures of NA
(2006 est.)

Agriculture - products:
corn, wheat, pulses, sorghum, barley; livestock

Industries:
food, beverages, textiles, apparel assembly, handicrafts,
construction, tourism

Industrial production growth rate:
1