Sierra Leone Gist: Sierra Leone to Grow by 5.4 % in 2017

Momodu Kargbo, Minister of Finance

The country is projected to grow in 2017 by 5.4 percent GDP (Gross Domestic Product) from 4.9 percent in 2016, Momodu Kargbo, Minister of Finance said in his budget speech to parliament on 11th November.  In 2018, the economy is forecast to grow by 5.8 percent.

“The growth will be driven mainly by the expected increases in iron ore production, agriculture, fisheries, tourism, construction, manufacturing and energy,” Minister Kargbo said. Revenue from iron ore averaged $60 million in 2013 and 2014 but fell below $15 million in 2016, Mr Kargbo noted.

Domestic revenue in 2017 is projected at Le3.6 trillion Leones or 11.8 percent of GDP from Le2.8 trillion in 2016. The two major revenue streams will continue to be personal income tax and goods and services tax.

“Mining royalties and licenses are projected at Le167.6 billion,” the Minister said. “For 2017, total grants from development partners are projected at Le956.9 billion (3.1 percent of GDP) compared to Le755.5 billion Leones in 2016.”

Expenditure and net lending is projected at Le5.4 trillion or 17.8 percent of GDP in 2017 compared to Le4.8 trillion or 17.9 percent of GDP in 2016. This shows the country runs on a deficit budget.

Culled from Awoko