Sierra Leone Projected to Grow by 4.3% GDP in 2016

Sierra Leone is projected to grow in 2016 by 4.3 percent Gross Domestic Product (GDP) from a contraction of 21 percent last year with the resumption of iron ore mining and the end of Ebola, according to the International Monetary Fund (IMF) in a statement released on March 29.
A team from the IMF visited Sierra Leone from March 15 -29 to conduct the fifth review under the Extended Credit Facility programme (ECF) and at the end of the visit issued the statement, disclosing that “Sierra Leone’s economy is recovering from the twin shocks of the Ebola virus epidemic and the halt in iron-ore mining. Economic momentum is building again, and GDP is expected to grow by 4.3 percent this year from a contraction of 21 percent in 2015,” the statement reads.
“Shandong Iron and Steel Group (SISG) have resumed iron ore production and have shipped over 10 shiploads since the start of operation in February. But the fall in commodity prices and drop in demand from China are major challenges to the economy.
Inflation was 8.5 percent in December 2015, “but a small up-tick is expected in 2016 due to the depreciation of the Leone.” The buying rate of the Dollar currently is Le 5,887.16 and selling rate is Le 6,006.09 according to the Bank of Sierra Leone weekly exchange rate. Exchange rate on the black market is Le 6,100 buying rate and Le 6,500 selling rate.
“The government budget is under pressure, reflecting a likely shortfall in donor receipts, higher-than budgeted spending on certain categories of expenditures, and a shortfall in domestic financing,” the release states.
“Ebola virus could resurface, dampening economic activities. Dependence on external flows, especially from iron ore exports and donor support, leaves the economy exposed to external shocks.”
Two of the benchmarks that Sierra Leone is yet to meet are stated in the Public Financial Management PFM) bill which has to do with the establishment of a single treasury account and the creation of a Natural Resource Revenue Fund.
The IMF hopes “revenue policies will address enhanced mobilization and elimination of import duty exemptions and waivers which cost the budget significant revenue. Expenditure policy will seek to increase oversight of the finances of sub-vented agencies and state owned enterprises. Pro-poor expenditure will continue to be protected.”
There is also the need to speed up reforms in the area of tax administration and the establishment of the single treasury account.
Monday April 04, 2016

follow on: http://awoko.org/2016/04/04/sierra-leone-news-sierra-leone-projected-to-grow-by-4-3-gdp-in-2016/