Sierra Leone : 2016 Article IV Consultation and Fifth Review Under the Extended Credit Facility and Financing Assurances Review and Request for an Extension of the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Direct

After a dozen years of strong growth, benefiting from both improved polices and booming commodity prices, Sierra Leone has been hit by twin shocks since mid-2014: (i) the Ebola epidemic and (ii) sharply lower iron ore prices. As a result, economic outcomes have deteriorated sharply. Growth declined dramatically from 4.6 percent in 2014 to -21.1 percent in 2015. The budget is under severe pressure, with the authorities having difficulty funding routine expenditures in a timely manner. Between mid-2014 and end-2015, the Leone depreciated 22 percent against the US dollar. Banking sector vulnerabilities have also increased. The World Health Organization declared Sierra Leone Ebola-free for the second time on March 17, 2016. The Article IV discussions were conducted together with the fifth review under the Extended Credit Facility.