Sierra Leone Economic Update, November 2025: Enabling the Private Sector for Growth and Job Creation

World Bank

Sierra Leone Economic Update, November 2025: Enabling the Private Sector for Growth and Job Creation

Autores

World Bank

Editor

Washington, DC: World Bank

Descripción

Sierra Leone’s economy continues to navigate complex domestic and global challenges constraining growth and jeopardizing macro stability. Fiscal policies remained loose, and the deficit continued to exceed budget targets for the fourth consecutive year, hurting policy credibility and debt sustainability. While inflation pressures have moderated and the currency has stabilized, external buffers have eroded leaving the economy more vulnerable to shocks. Job creation is a major challenge. The absence of a vibrant private sector contributes to the growth and jobs deficit. Access to finance, land, electricity, skills and regulatory inefficiencies, coupled with chronic macroeconomic instability and underdeveloped trade and competition frameworks–all pose systemic constraints. Weak financial management is a pervasive, cross-cutting constraint to fiscal policy credibility, effectiveness, and oversight. Monetary policy is de facto governed by its fiscal dominance. A banking-sovereign nexus continues to weigh on private sector lending and poses a risk to macroeconomic stability. External accounts remain under pressure as reserves continue to decline, despite an improvement in the trade balance. Looking ahead, growth is projected at 4.3 percent in 2025 and expected to recover to 4.6 percent by 2027. However, risk to growth persists amidst global trade uncertainties, and health and climate risks. Key drivers will include continued agricultural productivity gains, mining expansions, and services sector resilience. Further, scaling up Feed Salone and private sector-led agricultural value chains is vital to boosting food security, export diversification, and inclusive job creation.