Sierra Leone-Freetown: The reduction in merchandise imports counterbalanced the decline in exports causing the trade deficit to narrow by 2.6 percentage points (pp) of GDP, according to the World Bank.
Correspondingly, increased support by development partners (including the International Monetary Fund and World Bank) increased official transfers by 2.8 percent to 8.4 percent of GDP (US$353.4 million)
According to the Bank, merchandise exports declined by 2.1 pp, to 14.2 percent of GDP (US$596.5 million), as demand for mineral exports plummeted due to the pandemic and iron ore production failed to resume as anticipated.
Along with global demand, mineral exports fell by 0.9 pp, to 9.8 percent of GDP (US$415 million), and the international arbitration between the government and Sierra Leone Mining Company Limited (SL Mining) relating to mining of iron ore remained unresolved.
Agricultural exports improved by 0.2 pp to 1.6 percent of GDP (US$70.5 million), as production of palm oil, coffee, and cocoa was heightened, supported by new investments and more support for farmers.
However, merchandise imports fell by 4.7 pp, to 29.1 percent of GDP (US$1,221.5 million). Petroleum imports increased by 0.3 pp to 4.3 percent of GDP (US$185.6 million), supported by favorable global crude oil prices.
But other imports, especially manufactured goods and transportation equipment, dropped considerably because of the general contraction in economic activities during the pandemic. Food imports went up by 0.2 pp to 5.9 percent of GDP (US$251.1 million), driven mainly by special credit to businesses to facilitate imports to build up food buffers and prevent scarcity in local markets.
ZIJ/9/8/2021