Commending Sierra Leone’s steadfast implementation of the International Monetary Fund-supported economic recovery programme under difficult circumstances, the Executive Board of the Fund has said the West African country remains vulnerable to external risks.
At the recent conclusion of the 2016 consultation with Sierra Leone, the Directors noted that the Ebola epidemic and lower iron ore prices have posed significant challenges.
They emphasized that sustained reform efforts are needed, particularly in the fiscal and financial sectors, to generate robust and sustainable growth which can facilitate poverty reduction in the country.
According to the Directors’ assessment, the medium-term outlook was somewhat positive, with growth projected to recover to 4.3 percent this year, increasing gradually to around 6.5 percent by 2020, given that the twin shocks have largely wound down.
They encouraged the authorities in Sierra Leone to maintain prudent borrowing policies, especially in view of the narrow export base and the fragile fiscal position.
Sierra Leone has been hit by twin shocks since mid-2014: the Ebola epidemic and sharply declining iron ore prices.