Sierra Leone’s GDP Growth Expected to Accelerate in 2025

Sierra Leone’s GDP growth is forecasted to rise from 4.1% in 2024 to 4.5% in 2025, driven by increased private consumption amid rising public sector wages. However, potential risks could impact this outlook if disinflation slows or other economic factors decline.

Sierra Leone’s real GDP growth is projected to rise from an estimated 4.1% in 2024 to 4.5% in 2025. This anticipated increase is attributed to higher public sector wages and enhanced purchasing power among consumers, which is expected to drive private consumption.

However, there are significant risks associated with this outlook. A slowdown in Sierra Leone’s disinflationary trend, instances of currency depreciation, agricultural sector underperformance, or potential climate-related challenges could necessitate a downward adjustment in the growth forecasts.

It is important to note that this analysis is published by BMI, part of Fitch Solutions, and does not reflect Fitch Ratings’ stance on credit ratings. The insights provided stem from independent sources and BMI’s own data only.

In summary, Sierra Leone is poised for an increase in GDP growth due to rising private consumption driven by improved public sector wages. Nevertheless, various risks, including currency depreciation and agricultural performance, may pose challenges to achieving these targets. Continued monitoring of these factors will be critical for accurate growth assessments going forward.

Original Source: www.fitchsolutions.com