By Tanu Jalloh
Published recently by Index Mundi (www.indexmundi.com), “home of the Internet's most complete country profiles that contains detailed country statistics, charts, and maps compiled from multiple sources”, Sierra Leone’s economy was profiled for 2012.
The information drew its references from, sourced and vetted by the US based Central Intelligence Agency (CIA) World Factbook, which provides information on the history, people, government, economy, geography, communications, transportation, military, and transnational issues for 267 world entities.
Each year such exercises are undertaken to bring emerging economies under the global investment spotlight. Meanwhile, on this it would seem both authorities strongly believe that unless otherwise, “information in this page is accurate as of July 12, 2011”, almost a year later.
Let’s assume, for argument’s sake, that the information was accurate and credible. What does it mean for the country? Read, below, statistics reproduced verbatim from the above sources and let’s make our judgement based, not only on their findings but also on some of the facts we are privy to but which may not have been referred to in the details of the report.
Economy Overview
Sierra Leone is an extremely poor nation with tremendous inequality in income distribution. While it possesses substantial mineral, agricultural, and fishery resources, its physical and social infrastructure has yet to recover from the civil war, and serious social disorders continue to hamper economic development.
Nearly half of the working-age population engages in subsistence agriculture. Manufacturing consists mainly of the processing of raw materials and of light manufacturing for the domestic market.
Alluvial diamond mining remains the major source of hard currency earnings, accounting for nearly half of Sierra Leone's exports. The fate of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and supplement government revenues.
The IMF has completed a Poverty Reduction and Growth Facility program that helped stabilize economic growth and reduce inflation and in 2010 approved a new program worth $45 million over three years.
Political stability has led to a revival of economic activity such as the rehabilitation of bauxite and rutile mining, which are set to benefit from planned tax incentives. A number of offshore oil discoveries were announced in 2009 and 2010. However, the development on these reserves, which could be significant, is still several years away.
GDP (purchasing power parity)
$4.72 billion (2010 estimate (est.)
$4.498 billion (2009 est.)
$4.358 billion (2008 est.)
Note: data are in 2010 US dollars
GDP (official exchange rate)
$1.905 billion (2010 est.)
GDP - real growth rate
5% (2010 est.)
3.2% (2009 est.)
5.5% (2008 est.)
GDP - per capita (PPP)
$900 (2010 est.)
$900 (2009 est.)
$900 (2008 est.)
Note: data are in 2010 US dollars
GDP - composition by sector
Agriculture: 51.3%
Industry: 22%
Services: 26.7% (2010 est.)
Population below poverty line
70.2% (2004)
Labor force
2.207 million (2007 est.)
Labor force - by occupation
Agriculture: NA%
Industry: NA%
Services: NA%
Unemployment rate
NA%
Unemployment, youth ages 15-24
Total: 5.2%
Male: 7.3%
Female: 3.5% (2004)
Household income or consumption by percentage share
Lowest 10%: 2.6%
Highest 10%: 33.6% (2003)
Distribution of family income - Gini index
62.9 (1989)
Investment (gross fixed)
15.4% of GDP (2010 est.)
Budget
Revenues: $389.7 million
Expenditures: $527.9 million (2010 est.)
Taxes and other revenues
20.5% of GDP (2010 est.)
Budget surplus (+) or deficit (-)
-7.3% of GDP (2010 est.)
Inflation rate (consumer prices)
16.6% (2010 est.)
9.3% (2009 est.)
Central bank discount rate
NA%
Commercial bank prime lending rate
21.25% (31 December 2010 est.)
22.167% (31 December 2009 est.)
Stock of money
$219.1 million (31 December 2008)
$184.6 million (31 December 2007)
Stock of narrow money
$249.7 million (31 December 2010 est.)
$209.4 million (31 December 2009 est.)
Stock of broad money
$532.8 million (31 December 2010 est.)
$437 million (31 December 2009 est.)
Stock of quasi money
$215.2 million (31 December 2008)
$177.7 million (31 December 2007)
Stock of domestic credit
$333.2 million (31 December 2010 est.)
$178.7 million (31 December 2009 est.)
Market value of publicly traded shares
$NA
Agriculture - products
Rice, coffee, cocoa, palm kernels, palm oil, peanuts; poultry, cattle, sheep, pigs; fish
Industries
Diamond mining; small-scale manufacturing (beverages, textiles, cigarettes, footwear); petroleum refining, small commercial ship repair
Industrial production growth rate
NA%
Electricity - production
58 million kWh (2008 est.)
Electricity - production by source
Fossil fuel: 100%
Hydro: 0%
Nuclear: 0%
Other: 0% (2001)
Electricity - consumption
53.94 million kWh (2008 est.)
Electricity - exports
0 kWh (2009 est.)
Electricity - imports
0 kWh (2009 est.)
Oil - production
25 bbl/day (2010 est.)
Oil - consumption
9,000 bbl/day (2010 est.)
Oil - exports
499.5 bbl/day (2009 est.)
Oil - imports
4,945 bbl/day (2009 est.)
Oil - proved reserves
0 bbl (1 January 2011 est.)
Natural gas - production
0 cu m (2009 est.)
Natural gas - consumption
0 cu m (2009 est.)
Natural gas - exports
0 cu m (2009 est.)
Natural gas - imports
0 cu m (2009 est.)
Natural gas - proved reserves
0 cu m (1 January 2011 est.)
Current Account Balance
-$277.8 million (2010 est.)
-$291 million (2009 est.)
Exports
$362.9 million (2010 est.)
$270.4 million (2009 est.)
Exports - commodities
Diamonds, rutile, cocoa, coffee, fish
Exports - partners
Belgium 29.2%, Romania 15.3%, US 9%, Netherlands 7.3%, Cote dIvoire 5.7%, UK 4.1% (2010)
Imports
$735.9 million (2010 est.)
$511.9 million (2009 est.)
Imports - commodities
Foodstuffs, machinery and equipment, fuels and lubricants, chemicals
Imports - partners
South Africa 14.7%, China 10.7%, Malaysia 6.7%, US 6.6%, UK 6.4%, Cote dIvoire 5.7%, India 4.8% (2010)
Reserves of foreign exchange and gold
$409 million (31 December 2010 est.)
$405 million (31 December 2009 est.)
Debt - external
$1.61 billion (2003 est.)
Exchange rates
Leones (SLL) per US dollar -
NA (2007)
2,961.7 (2006)
2,889.6 (2005)
2,701.3 (2004)
2,347.9 (2003)
Comments
Conclusions regarding the wealth and health of the economy, as understood in the above explanations, may be very complex but a fact which remains clear is that of the faith informing projections and estimates for the year under review. I say complex because certain missing links, like the non-availability of data on the industrial production growth rate and the exchange rates (Leones (SLL) per US dollar) for five consecutive years since 2003, could be crucial in determining inflation and unemployment as well as export for forex.
Generally, the impression created is positive; although some details have not made provisions for the understanding of the situation otherwise, instances alluded to were supporting statistics indicating prospects for economic growth.
The figures spanning way back to 2003 were compelling factors to be considered in putting together their findings, but some of these were not necessarily supportive of the conclusion contained in the literature that introduced the numerals (projections and estimates). From between 2003 and 2007, figures provided were supposed to highlight the situation as they were, usually a backgrounder. From 2008 to 2011, realistic situations are referenced as efforts in the immediate past, usually tendered as proof that the economy was picking up or slowing down. This period characterised the post global financial crisis era.
