MASERU- While there has been a contradicting figure on the projected economic slump for the year 2020, a true reflection is that the economy will contract by more than 5 percent this year.
business
June 2, 2020
NEO SENOKO
2 min read
Lesotho experiences further economic slump - Majoro
Prime Minister Dr Moeketsi Majoro
This was revealed by Prime Minister Dr Moeketsi Majoro on Thursday last week during his address on national television in which he said the economy is likely to experience a 10 percent slump this year.
This revelation comes shortly after the Central Bank of Lesotho (CBL) projected last month in its Monetary Policy Committee Statement that the economy is expected to contract by 5.7 percent in 2020 mainly due to the COVID-19 infection control measures.
“According to the CBL measure of economic activity, economic performance declined by 0.6 per cent in March 2020, relative to a 0.2 per cent decrease in February.
“While economic forecasts are likely to change, the economy is expected to contract by 5.7 percent in 2020 mainly due to COVID-19 infection control measures,” the CBL governor, Dr Retšelisitsoe Matlanyane had said.
CBL governor Dr Retšelisitsoe Matlanyane
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Following his shocking economic estimations, the prime minister further warned that extreme hunger and poverty are likely to hit Lesotho as no food imports are expected.
He however, showed that the government is already working on several measures to mitigate the effects of COVID-19 and stabilise the economy.
Dr Majoro was recently sworn in as the prime minister, replacing Dr Motsoahae Thabane who was forced into retirement.
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