By Ragan M Conteh

President Julius Maada Bio during his state opening of the second republic of the sixth Parliament on Thursday, August 7th, 2025 informed the nation that despite global and domestic challenges, Sierra Leone’s economy remains resilient.

He stated that, real GDP grew by 4.0% in 2024, driven by strong performances in mining, agriculture, construction, light manufacturing, and a rebound in services, particularly tourism.

He said though slightly below 2022 and 2023 growth due to temporary declines in iron ore prices and mining output, the outlook remains positive.

Inflation fell sharply from 54.5% in October 2023 to 13.8% by December 2024, and further to 7.10% by June 2025. This reflects disciplined monetary policy, stronger fiscal governance, exchange rate stability, increased food production, and lower global energy prices.

He said interest rates on government securities rose in 2024 (34.71% to 41.28%) but have since declined while lending rates saw modest increases and savings deposit rates adjusted downward.

The Leone depreciated by only 5.7% against the US dollar in 2024, a marked improvement over 2023, reflecting effective monetary management by the Bank of Sierra Leone.

According to President Bio, Domestic revenue reached NLe14.6 billion (8.8% of GDP), slightly below target, while total expenditure and net lending (NLe26.9 billion, 16.3% of GDP) marginally exceeded the budget (NLe26.4) billion, 16.0% of GDP), grants totaled NLe5.0 billion (3% of GDP), with EU and World Bank budget support amounting to USS70.3 million to reinforce development efforts.

The chief executive further stated that the overall fiscal performance improved, with higher revenue, slightly lower spending, and a reduced deficit of 4.8% of GDP down from 5.3% in 2023.

Public debt declined from 46.6% of GDP in 2023 to 39.5% in 2024, supported by focused repayment and exchange rate stability, though domestic debt rose slightly to finance the budget and public investment.

He maintained that in November 2024, the IMF approved a 38-month, US$243 million Extended Credit Facility to support our reforms, with an initial disbursement of US$25 million. The first and second programme reviews are ongoing ahead of the September 2025 assessment.

He noted that the Bank of Sierra Leone continues to maintain price stability and promote inclusive growth through sound monetary policy and oversight. We are advancing financial sector reforms –modeming payment systems, improving credit referencing, and expanding digital financial services to boost inclusion and private sector development.

He reiterated that while structural challenges remain, our economic fundamentals are strengthening. “My government remains committed to prudent macroeconomic management, fiscal discipline and targeted reforms to sustain growth, reduce poverty, and expand opportunities for all Sierra Leoneans.