Sierra Leone’s 2023 Audit Report has painted the country’s economy with a picture of modest growth combined with several challenges and promising trends.
According to the report, the economy grew by 3.4% in 2023, marking a slightly slow pace compared to the previous year of 3.5% growth. This minimal slowdown is primarily attributed to a fall in the service sector, particularly tourism and travel, which had previously been driving significant gains.
Excluding the iron ore sector, the GDP growth remained consistent at 2.7%, echoing the figures from 2022. However, when iron mining is excluded, the growth dropped to 2.7% from 3.0%, hinting at the importance of the mining industry to the country’s overall economic health.
The report furthered that inflation showed signs of moderation towards the year’s end, descending to 52.2% in December from a peak of 54.6% in October. This was largely due to declining food price inflation and a relatively stable exchange rate.
However, the average inflation rate for the year stood at a hefty 45.6%, reflecting persistent economic pressures. On the currency front, the Leone depreciated by 16.8% over the year, a marked improvement from the previous year’s 64.3% depreciation rate.
Also, the report mentioned that government revenue saw an increase in 2023, thanks to the automation of revenue streams, although gaps in revenue assessment and collection were identified.
Despite increased revenue, government expenditure surged, causing the overall budget deficit to widen from (NLe3,455,733) in 2022 to (NLe5,511,214) in 2023. The net cash balance deteriorated further into negative territory, fueled by an increase in bank overdrafts by over NLe1.6 million.
The report also laid out comprehensive macroeconomic indicators from 2018 to 2023, including GDP growth rates, inflation, exchange rates, and international reserves. This historical data allows for tracking and comparing economic performances across years, offering valuable insights into the country’s economic trends.
