Projected economic growth revised downwards

The projected economic growth for the 2025/26 fiscal year has been revised downward to 1.3 percent, from the previous 3.4 percent estimate quoted in the current year budget estimates.

The Minister of Finance and Development Planning, Dr Retŝelisitsoe Matlanyane, disclosed this today in the National Assembly while presenting the Mid-Term Review of the 2025/26 national budget, under the theme: “Building Strategies for Inclusive Growth.”

Matlanyane said while increased spending on construction activities related to the second phase of Lesotho Highlands Water Project is expected to provide some stimulus, the new United States tariffs on exports and ongoing challenges in the textile and mining sectors are major growth impediments.

“The growth adjustment reflects a more cautious outlook for the country’s economy in the near term, with a medium-term average growth rate of 1.2 percent,” she noted.