Global financial conditions and geographical fragmentation could weigh onĮxternal demand, exacerbate the decline in real incomes and deteriorateįiscal and external accounts. Risks to this outlook are high, as slower global growth, tighter Gradually decline to single digits over the medium term amid theĬontractionary policy stance while foreign exchange reserves would To 2.7 percent before recovering in 2024. “Macroeconomic conditions are expected to stabilize over the medium, but To build foreign exchange reserves will boost resilience to economic Maintaining a flexible exchange rate system and continuing It also plans to take steps to revive the interbank foreignĮxchange market. Strengthening monetary policy communication to help anchor inflationĮxpectations. Inflation and contain the currency depreciation, while further “The central bank committed to tightening monetary conditions to bring down Reform efforts will alsoįocus on strengthening budget preparation and execution while containing The school feeding program, will be protected. Medium-term wage bill management strategy. Expenditure containment measures will involve rationalizingĭiscretionary spending, reducing energy subsidies, and improving theĮfficiency of capital expenditures, and will benefit from a planned Measures and will be anchored in the new medium-term revenue strategy Revenue mobilization willīuild on the new Finance Act 2023 and recent revenue administration “Fiscal policy will focus on domestic revenue mobilization and expenditureĬontainment while protecting social spending. Restoring macro stability and containing increasing risks to debt Monetary policies while strengthening policy coordination with view to “The authorities and the IMF team agreed on the need to tighten fiscal and November 2023 to accommodate an eighth, and final, review to continueīuilding on recent reforms and achieve program objectives. The authorities have requested an extension of the program to However, program performance has improved considerably “Weak program performance over the course of 2022 resulted in the delay of The soaring cost of living has worsened already high levels of food The fifth review in July 2022, inflation has continued to rise, theĬurrency has depreciated sharply, and debt related risks have increased. While growth inĢ022 is estimated at 3.6 percent, in line with projections at the time of Shocks and looser-than-warranted macroeconomic policies. "Sierra Leones’s economic challenges have intensified with multiple external The agreement is subject toĪpproval by IMF Management and the Executive Board. Staff-level agreement on the sixth and seventh reviews of Sierra Leone’sĮconomic program under the ECF arrangement. “The Sierra Leonean authorities and the IMF staff team have reached a Subject to approval by IMF Management and the Executive Board in theĬoming weeks, the completion of the reviews under the ECF will makeĪvailable SDR 15.5 million (about US$ 20.8 million), bringing the total IMFįinancial support under the arrangement to SDR 108.8 million (aboutĪt the conclusion of the mission, Mr. Reviews of Sierra Leone’s financial and economic program supported by theĮxtended Credit Facility (ECF), approved on Novem(see Visited Freetown from April 17 to 28, 2023, for the sixth and seventh Building resilience and laying the foundations for stronger growth through fiscal consolidation and addressing debt vulnerabilities, while protecting the most vulnerable from the shocks, remain key to the success of the program.Īn International Monetary Fund (IMF) team, led by Mr.The authorities have requested an extension of the program to November 2023 to continue building on recent reforms and achieve program objectives. Inflation has continued to rise the currency has depreciated sharply and debt related risks have increased. Sierra Leones’s economic challenges have intensified.The IMF Executive Board will consider the reviews in the coming weeks. IMF staff and the Sierra Leonean authorities reached a staff-level agreement on economic policies to conclude the sixth and seventh reviews of the ECF-supported program, which would allow releasing US$21 million in financing.Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country.
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