Lesotho’s credit to private sector fell to 24.3% of GDP in 2024.

Neither way is good in itself. A higher share can mean a deeper financial system that funds homes, equipment and working capital, and it can also mean households and firms carry heavier repayment burdens. A lower share can reflect cautious borrowing or a shortage of lending. The measure therefore has no good or bad direction by itself. The latest figure is 24.3% of GDP for 2024, down from 24.7% of GDP a year earlier, a fall of 0.43 percentage points. Since 2015 the range runs from a low of 18.2% of GDP in 2016 to a high of 24.7% of GDP in 2023, so the 2024 reading sits just below the top of its own range.

Why it matters. For Lesotho households, this level means a large body of outstanding loans that has to be serviced from wages and other income. For firms, it shows how much bank financing is in use for stock, equipment and day-to-day costs. For the state, the 2024 figure suggests private lending is near its highest level of the period, so repayment problems among borrowers would matter more for the financial system than they did in 2016.