The country's economy grew by 3.4 percent in 2004, roughly the same rate as the previous year, supported by the reopening of a key diamond mine at the end of 2003, the Central Bank of Lesotho has announced.

In its annual report, the CBL said the reopening of the Letšeng open cast mine has helped offset a slowdown in manufacturing, blamed partly on the strength of the loti against the dollar.

"This has elevated the potential of of the sector as a diversification channel, away from traditional export-led growth through manufacturing," the CBL report said.

The manufacturing sector grew five percent in 2004, slowing slightly from 5.2 percent in 2003. It is still the country's economic mainstay, it said.

16 August 2005