- Economy of Sierra Leone
This is a chart of trend of gross domestic product of Sierra Leone at market prices [http://www.econstats.com/IMF/IFS_Sie1_99B__.htm#Year estimated] by the International Monetary Fund and EconStats with figures in millions of Sierra Leone Leones.
[http://earthtrends.wri.org/text/economics-business/variable-638.html Current GDP per capita] of Sierra Leone grew 32% in the Sixties reaching a peak growth of 107% in the Seventies. But this proved unsustainable and it consequently shrank by 52% in the Eighties and a further 10% in the Nineties.
Rich in minerals,
Sierra Leonehas relied on the miningsector in general, and diamonds in particular, for its economic base. In the 1970s and early 1980s, economic growthrate slowed because of a decline in the mining sector. Financially disadvantageous exchange rates and government budget deficits led to sizable balance-of-payments deficits and inflation. Certain policy responses to external factors as well as implementations of aid projects and maintenance have led to a general decline in economic activity and a serious degradation of economic infrastructures. Sierra Leone's short-term prospects depend upon continued adherence to International Monetary Fundprograms and continued external assistance.
Although two-thirds of the population engages in
subsistence agriculture, and despite the fact that most Sierra Leoneans derive their livelihood from it, agriculture accounts for only 42% of national income. As of 2003, the government was trying to increase food and cash crop production and upgrade small farmer skills. Also, the government works with several foreign donors to operate integrated rural development and agricultural projects.
Average wages in 2007 hover around $1-2 per day.
External trade and investment
Mineral exports remain Sierra Leone's principal foreign exchange earner. Sierra Leone is a major producer of gem-quality diamonds. Though rich in this resource, the country has historically struggled to manage its exploitation and export. Annual production estimates range between $70-$250 million; however, only a fraction of that passes through formal export channels (1999: $1.2 million; 2000: $16 million; 2001: projections $25 million). The balance is smuggled out and has been used to finance rebel activities in the region,
money laundering, arms purchases, and financing of other illicit activities, leading some to characterize Sierra Leone's diamonds as a "conflict resource." Recent efforts on the part of the country to improve the management of the export trade have met with some success. In October 2000, a new UN-approved export certification system for exporting diamonds from Sierra Leone was put into place that led to a dramatic increase in legal exports. In 2001, the Government of Sierra Leone created a mining community development fund, which returns a portion of diamond export taxes to diamond mining communities. The fund was created to raise local communities' stake in the legal diamond trade.
Sierra Leone has one of the world's largest deposits of
rutile, a titaniumore used as paint pigment and welding rod coatings. Sierra Rutile Limited, wholly owned by Nord Resourcesof the United States, began commercial mining operations near Bonthe in early 1979. Sierra Rutile was then the largest non- petroleumU.S. investment in West Africa. The export of 88,000 tons realized $75 million for the country in 1990. The company and the Government of Sierra Leone concluded a new agreement on the terms of the company's concession in Sierra Leone in 1990. Rutile and bauxitemining operations were suspended when rebels invaded the mining sites in 1995. Negotiations for reactivation of rutile and bauxite mining are in progress. The U.S. interest in the company has been reduced to 25%.
Since independence, the Government of Sierra Leone has encouraged foreign investment, although the business climate suffers from uncertainty and a shortage of foreign exchange because of civil conflicts. Investors are protected by an agreement that allows for arbitration under the 1965
World BankConvention. Legislation provides for transfer of interest, dividends, and capital.
Sierra Leone is a member of the
Economic Community of West African States(ECOWAS). With Liberiaand Guinea, it formed the Mano River Union(MRU) customs union, primarily designed to implement development projects and promote regional economic integration. However, the MRU has so far been inactive because of domestic problems and internal and cross-border conflicts in all three countries. The future of the MRU depends on the ability of its members to deal with the fallout from these internal and regional problems.
Sierra Leone continues to rely on significant amounts of foreign assistance, principally from multilateral donors. The bilateral donors include the
United States, Italy, and Germany, the largest being the United Kingdomand the European Union.
GDP: purchasing power parity - $5.012 billion (2005 est.), $2.5 billion (1999 est.)
GDP - real growth rate: 5.5% (2005 est.), -10% (1999 est.)
GDP - per capita: purchasing power parity - $800 (2005 est.), $500 (1999 est.)
GDP - composition by sector:
"services:" 21% (2001 est.)
"services:" 21% (2001)
Population below poverty line: 68% (1989 est.)
Household income or consumption by percentage share:
"lowest 10%:" 0.5%
"highest 10%:" 43.6% (1989)
Distribution of family income - Gini index: 62.9 (1989)
Inflation rate (consumer prices): 1% (2002 est.), 30% (1999 est.)
Labor force: 1.369 million (1981 est.)
"note:" only about 65,000 wage earners (1985)
Labor force - by occupation:agriculture NA%, industry NA%, services NA%
Unemployment rate: NA%
"revenues:" $96 million
"expenditures:" $351 million, including capital expenditures of $NA (2000 est.)
"revenues:" $96 million
"expenditures:" $150 million, including capital expenditures of $NA (1996 est.)
mining(diamonds); small-scale manufacturing (beverages, textiles, cigarettes, footwear); petroleumrefining
Industrial production growth rate: NA%
Electricity - production: 250.1 GWh (2001), 235 GWh (1998)
Electricity - production by source:
"fossil fuel:" 100%
"other:" 0% (2001)
"fossil fuel:" 100%
"other:" 0% (1998)
Electricity - consumption: 232.6 GWh (2001), 219 GWh (1998)
Electricity - exports: 0 kWh (2001, 1998)
Electricity - imports: 0 kWh (2001, 1998)
Oil - consumption: 6,500 barrel/day (1,000 m³/d) 2001
Agriculture - products:
rice, coffee, cocoa, palm kernels, palm oil, peanuts; poultry, cattle, sheep, pigs; fish, ginger
Exports: $35 million f.o.b. (2000 est.), $41 million (f.o.b., 1998)
Exports - commodities:
diamonds, rutile, cocoa, coffee, fish(1999)
Imports: $190 million f.o.b. (2002 est.), $166 million (f.o.b., 1998)
Imports - commodities: foodstuffs, machinery and equipment, fuels and lubricants, chemicals (1995)
Debt - external: $1.5 billion (2002 est.), $1.15 billion (1998)
Economic aid - recipient: $103 million (2001 est.), $203.7 million (1995)
Currency: 1 leone (Le) = 100 cents
Exchange rates:leones (Le) per US$1 - 2,099.03 (2002), 1,986.15 (2001), 2,092.12 (2000), 1,804.20 (1999), 1,563.62 (1998), 981.48 (1997), 920.73 (1996), 755.22 (1995)
1 July- 30 June
Economy of Africa
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