Lesotho: Lesotho—Staff Report for the 2000 Article IV Consultation and Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility
IMF Staff Country Reports, June 12, 2001
Source details
- Canonical URL
- Lesotho: Lesotho—Staff Report for the 2000 Article IV Consultation and Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility
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Bibliographic details
- Published: June 12, 2001
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451823677.002
Economic overview and risks
- The Lesotho economy is experiencing a downturn of economic growth, high unemployment and poverty, and fiscal and balance-of-payments pressures.
- The publication identifies pressures on the external current account balance and on gross international reserves as priorities for adjustment.
Fiscal adjustment
- The size of the proposed fiscal adjustment is described as adequate because it focuses on improvement in the external current account balance and the maintenance of gross international reserves.
Monetary arrangement and central bank actions
- The current monetary arrangement with South Africa has served Lesotho well.
- The efforts of the central bank to reduce the wide interest rate spreads, encourage financial intermediation, mobilize domestic savings, and reduce capital flight have been commended.
Subject areas and keywords
- Subject: Banking, Capital spending, Commercial banks, Economic sectors, Expenditure, Fiscal policy, Public sector, Revenue administration
- Keywords: Africa, amortization payment, authorities' effort, balance of payments situation, Capital spending, CR, government operation, ISCR, Lesotho's Interim Poverty Reduction Strategy Paper, Public sector, SDR, Southern Africa, staff appraisal