Lesotho—Statistical Issues Appendix As of end-October 2015

Assessment of Data Adequacy for Surveillance

General: Data provision is broadly adequate for surveillance with some key data shortcomings in fiscal and external sector statistics.

National Accounts: Bureau of Statistics (BOS) compiles and reports national accounts statistics on an annual basis. Statistical methods used to derive GDP have improved and new sources of data were developed, although serious challenges remain. National accounts were revised and rebased in 2008 and 2009. New sources of data, including VAT records, the 2008 labor force survey, 2010–11 household budget survey, household consumption surveys, and ongoing economic census (business survey) have improved the quality of the national accounts. Annual GDP estimates in current prices and volume terms from the production, expenditure, and income sides are currently produced and published by the BLS. Other macroeconomic indicators, such as high-frequency industrial production/trade indices, are used to monitor developments during the year. The source data needs to be improved by developing high quality data on intermediate consumption for key economic activities, intra-SACU exports and imports, and gross fixed capital formation in machinery and equipment, and formal and informal construction activities. Private consumption and gross fixed capital formation are now estimated within the framework of a supply and use table, although a discrepancy between supply and use leads to a discrepancy between GDP by activity and expenditure. BOS, with the help of Fund’s TA, intends to begin compiling quarterly national account series.

Price Statistics: The official monthly consumer price index (CPI), a composite of urban and rural price data, is available on a timely basis. The index has been re-referenced to March 2010=100, using 2002/03 Household Budget Survey. The work on developing producer and export price indices is ongoing. In the meantime, the national accounts rely on South Africa’s producer price index and import price indices, used as deflators for imports from SACU- and non-SACU countries, respectively.

Government Finance Statistics (GFS): The compilation of GFS is consistent with GFSM 2001, although the quality, timelines, and periodicity of data have shortcomings. GFS are not provided on a regular basis and the quality of data remains poor, as indicated by significant discrepancies between transactions above and below the line. GFS are compiled from the Integrated Financial Management Information System (IFMIS), supplemented with data from the Lesotho Revenue Authority (LRA), other government departments and units and the banking system. Teething problems experienced with phasing in the IFMIS and in the absence of monthly reconciliation of all Treasury accounts, the coverage of revenue and expenditure data could be incomplete The authorities have been working with international partners, including the EU, the World Bank, and FAD on improving the functionality of the IFMIS and launching monthly reconciliation of all Treasury accounts. GFS is compiled for central government and general government statistics are not available.

Monetary and Financial Statistics (MFS): The Central Bank of Lesotho (CBL) reports monetary data on a regular basis based on Standardized Report Forms (SRFs), with monthly data disseminated through the IFS. Improved data sources helped improve classification and sectorization of accounts. The institutional coverage of MFS needs to be expanded to include other depository and other financial corporations.

Financial sector surveillance: The CBL has begun the process of compiling FSIs on a consistent basis and started by recreating consistent FSIs since 2006. FSIs on depository corporations are reported on a quarterly basis with a lag. However, FSIs on non-financial corporations, households, and real estate markets are not available. A recent mission visited Maseru during April 7–April 11, 2014 to assist CBL staff in the compilation of FSIs according to the FSIs Compilation Guide and work with CBL staff to disseminate the FSI data and metadata on the IMF's FSI website.

External Sector statistics: Lesotho benefited from technical assistance provided by STA on the compilation of external sector statistics. Until recently, the CBL compiled and disseminated detailed quarterly balance of payments data in accordance with BPM5. The April 2014 technical assistance mission assisted the CBL in converting the quarterly balance of payments and international investment position (IIP) to the BPM6 framework, which eliminated a number of errors and inconsistencies in data. From the subsequent release, data will be published under BPM6 format. External debt database includes outstanding and contracted loans, their currency composition, debt service and amortization, as well as scheduled future disbursements and debt servicing. The centralized database for external grants has not been regularly updated.

Data Standards and Quality

Lesotho is a GDDS participant. GDDS metadata have been posted on the Fund's Dissemination Standards Bulletin Board since August 2003. Currently, Lesotho participates as a pilot country in enhanced GDDS (e-GDDS).