Lesotho profile

Demography and Health

Lesotho’s population sits at about 2.34 million in 2024, a relatively small country by global standards, yet with a demographic profile that is characteristic of a young, growing population. The birth rate stood at 24.1 per 1,000 people in 2023, suggesting a sizable cohort of young people entering the population each year, while the crude death rate of 10.6 per 1,000 in 2023 points to ongoing mortality pressures. Life expectancy at birth is low by international standards, at 57.4 years in 2023, and under-5 mortality remains a troubling indicator, at 58.9 per 1,000 live births in 2023, ranking among the higher end of global statistics. The comparatively high burden of child mortality is consistent with broader health system and development challenges visible in the health expenditure pattern and workforce indicators. Indeed, current health expenditure accounts for 12.7% of GDP in 2022, with per-capita government health expenditure (PPP) around 185 international dollars in 2022, and physicians totaling about 0.151 per 1,000 people in 2022, highlighting a substantial gap in medical personnel relative to population needs. The suicide mortality rate, at 28.7 per 100,000 in 2021, is notably high, signaling urgent mental health and social support considerations. Net migration in 2024 was negative by roughly 5,107 people, indicating outward movement that can exacerbate skill and labor supply constraints even as the total population remains modest. Internet penetration reached about 48% in 2023, reflecting growing digital access but also implying that a significant share of the population remains beyond online connectivity. These demographic and health indicators together reveal a country with a young but health-constrained population, where limited health infrastructure and workforce, financial commitments to health, and emigration pressures interact to influence outcomes in life expectancy, child health, and well-being.

Economy, Trade and Investment

Lesotho's economy shows a low nominal GDP per capita, with current US$ GDP per capita at about 972 in 2024 (PPP-adjusted GDP per capita is around 2,998 international dollars in 2024). This signals a low-income economy with widespread constraints on material living standards. The structure of trade is notably open for a small economy: exports of goods and services accounted for 42.9% of GDP in 2023, while imports of goods and services were exceptionally high at 98.6% of GDP in 2023, underscoring dependence on external supply for goods and consumption and leaving the country highly exposed to external shocks. Despite this openness, the current account balance was positive at 3.72% of GDP in 2024, suggesting that services exports, remittances, or other external receipts compensate for heavy import needs and help sustain external stability. Foreign direct investment net inflows remained negative at about -0.551% of GDP in 2024, hinting at disinvestment pressures or a cautious investment climate that limits newer capital inflows. Inflation is measured at 6.11% in 2024, which is moderate and can reflect a balance between price pressures and exchange-rate dynamics in a highly import-dependent economy. On the technology front, high-technology exports are relatively modest (about 480,654 current US$ in 2023), indicating limited scale of advanced manufacturing or R&D intensity. Renewable energy consumption accounted for 34.9% of total final energy consumption in 2022, signaling a meaningful contribution of renewables to the energy mix, which can support development goals in a country with hydro potential and climate resilience considerations. Overall, the economy shows the double-edged character of openness and vulnerability: strong trade openness and external resilience in the current account, but a fragile investment climate and heavy import reliance that pressurize domestic production and fiscal space.

Governance and Institutions

Lesotho faces significant governance and institutional challenges. Political stability and absence of violence or terrorism was measured at -0.306 in 2023 on a scale where higher is better, signaling comparatively weak stability by international standards. Regulatory quality stood at -0.59, and the rule of law at -0.48 in 2023, while control of corruption was -0.509 and government effectiveness -0.954 (both 2023 data points). These negative scores reflect persistent governance weaknesses that can hinder policy implementation, deter investment, and affect the efficiency of public service delivery. The combination of weak rule of law, limited regulatory quality, and low government effectiveness suggests structural hurdles in governance that can constrain inclusive growth, anti-poverty efforts, and health and education reforms. The presence of these governance constraints aligns with the broader indicators of health workforce shortages, high suicide rates, and social development gaps, painting a picture of systemic challenges that require institutional strengthening, transparency, and policy continuity to improve resilience and investor confidence.

Infrastructure and Technology

Digital connectivity and technology infrastructure present a mixed picture. Individuals using the Internet reached 48% of the population in 2023, indicating that nearly half of Basotho have online access, which is a positive driver for information, commerce, and education, yet also pointing to significant digital divides that exclude the other half. The country’s capacity for high-technology exports is modest, recorded at 480,654 current US$ in 2023, suggesting limited advanced manufacturing or sophisticated tech industries. The health workforce constraint is underscored by physicians per 1,000 people totaling 0.151 in 2022, reflecting a shortage of medical professionals that can impede universal health coverage and emergency care. Renewable energy consumption makes up 34.9% of total final energy consumption in 2022, highlighting a meaningful share of energy from renewable sources. This aligns with natural-resource advantages and policy potential for hydroelectric power, offering a path toward greater energy security and potential cost reductions for end users. The heavy reliance on imports—at nearly 99% of GDP in 2023—emphasizes exposure to global supply chains and logistics infrastructure needs. Taken together, these indicators portray a country with growing digital penetration and some renewable energy strengths, but with limited high-technology output, a thin domestic energy and health workforce base, and a logistics and import orientation that can constrain productivity unless complemented by targeted infrastructure development and investment.

Environment and Sustainability

Lesotho presents environmental features that are generally favorable in terms of water resource management and low per-capita emissions. The level of water stress, measured as freshwater withdrawal as a share of available resources, was 2.57% in 2021, ranking it among the lower-stress profiles, which implies abundant freshwater resources relative to withdrawals. Total greenhouse gas emissions excluding LULUCF per capita were 1.13 t CO2e per person in 2023, a very low level by global standards, reflecting limited industrial activity and lower energy intensity. Renewable energy contributes 34.9% of total final energy consumption in 2022, signaling a meaningful commitment to cleaner energy sources and potential resilience against fossil-fuel price volatility. The combination of abundant water resources, low per-capita emissions, and a notable share of renewables presents an environmental foundation that can support sustainable development goals, reduce climate risks, and attract climate-conscious investment. However, the strong reliance on imports for goods and services, along with governance and health system constraints, suggests that environmental gains need to be integrated with economic diversification and social policy improvements to realize long-run sustainability and inclusive growth.