Sierra Leone’s GDP growth is projected to rise to 4.5% in 2025, driven by increased public sector wages and purchasing power. However, risks such as currency depreciation and agricultural sector performance may impact this outlook negatively.
According to a recent forecast, Sierra Leone’s real GDP growth is expected to rise from an estimated 4.1% in 2024 to 4.5% in 2025. This positive growth is largely attributed to increasing public sector wages and enhanced purchasing power, which are anticipated to stimulate economic activity.
However, it is important to note the potential risks that could negatively impact this outlook. These risks include a slowdown in Sierra Leone’s disinflationary trend, currency depreciation, underperformance in the agricultural sector, and climate-related shocks. Such factors could necessitate a downward revision of the current growth forecasts.
This analysis is provided by BMI, a company affiliated with Fitch Solutions, and reflects insights derived from independent sources. It is essential to differentiate that any data or commentary contained within should not be construed as a viewpoint on Fitch Ratings Credit Ratings, as Fitch Ratings analysts do not collaborate with BMI.
In summary, Sierra Leone is poised for growth with an expected increase in GDP, primarily driven by rising public sector wages and improved consumer spending. Nevertheless, several downside risks persist, which could affect this trajectory if not adequately addressed.
Original Source: www.fitchsolutions.com
