IMF Staff Country Reports

Kingdom of Lesotho: 2023 Article IV Consultation-Press Release; and Staff Report

Publication Date:

July 20, 2023

Electronic Access:

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Summary:

The government-driven growth model remains a challenge for sustainable and inclusive growth in Lesotho, displacing resources from the private sector. Growth and inflation are subject to the impact of the war in Ukraine, sluggish regional performance, climate shocks, and longstanding structural issues including governance and corruption vulnerabilities, limited financial access, and fragile public financial management. The recently-elected government is prioritizing fiscal consolidation on the back of windfall transfers from the Southern African Customs Union (SACU) that have helped alleviate pressures on both financing and reserves.

Series:

Country Report No. 2023/268

Subject:

Debt sustainability analysis Expenditure External debt International organization Monetary policy Public debt Public financial management (PFM)

Frequency:

regular