Sierra Leone’s Economic Growth Forecast: Accelerating Due to Private Consumption

Sierra Leone’s GDP growth is forecasted to increase from 4.1% in 2024 to 4.5% in 2025, driven by rising public sector wages and improved purchasing power. However, risks remain, including currency depreciation and agricultural sector performance.

The economic forecast for Sierra Leone indicates that real GDP growth is projected to rise from an estimated 4.1% in 2024 to 4.5% in 2025. This growth acceleration is attributed to an increase in private consumption, bolstered by rising public sector wages and enhanced purchasing power among citizens.

However, it is important to note that our growth projections are subject to potential risks. Sluggishness in Sierra Leone’s disinflationary trend, exacerbated by currency depreciation, poor performance in the agricultural sector, or climate-related shocks could necessitate downward adjustments to these forecasts.

This report has been published by BMI, a subsidiary of Fitch Solutions, and does not reflect the opinions or ratings of Fitch Ratings. The data and insights provided are exclusively based on BMI and other independent sources.

In summary, Sierra Leone is expected to experience a modest acceleration in economic growth driven primarily by rising private consumption and increased public sector wages. Nevertheless, potential risks, including disinflationary pressures and adverse climatic conditions, pose threats to these projections, which necessitate careful monitoring. The report emphasizes that it reflects BMI’s analyses, distinct from Fitch Ratings’ assessments.

Original Source: www.fitchsolutions.com