Lesotho’s economy nearing the edge of a “fiscal cliff”

Lesotho’s economy is slowing down, which could indicate significant fiscal problems to come.

That’s according to the International Monetary Fund’s (IMF) mission chief to the southern African country.

Like many in Sub-Saharan Africa, Lesotho achieved strong economic growth between 2010 and 2014, averaging 4.6 per cent, but that’s since dropped to 2.6 per cent.

Fiscal problems in South Africa make Lesotho particularly vulnerable to drops in revenue that could persist over time.

David Dunn, IMF mission chief for Lesotho, explains the impact of such close ties between these two economies.

Duration: 5’30”

Source: United Nations Radio