Sierra Leone

Sierra Leone's economic development has been perpetually hampered by overdependence on mineral extraction—diamonds, iron ore, rutile, and bauxite have generated boom-bust cycles without building sustainable productive capacity. GDP reached $8.39 billion in 2025, with growth slowing to 3.9% in 2024 from 5.7% in 2023, primarily due to falling global iron ore prices. Projections show 4.4% growth in 2025 and 4.8% in 2026, driven by mining expansion, services, and the government's 'Feed Salone' agricultural program. The fiscal deficit narrowed from 5.3% to 4.8% of GDP through consolidation efforts. Inflation eased from 9.38% in April to 7.55% in May 2025, reaching 5.4% by September as tight monetary policy, stable exchange rates, and declining global commodity prices took effect. Iron ore exports improved the current account balance, demonstrating how commodity price movements directly determine national fortunes. Yet debt remains at high risk of distress, and the economy never escaped the resource curse pattern established during colonial diamond extraction. Over 75% of the labor force remains in subsistence agriculture, a stark indicator that mineral wealth has not translated into broad-based development. Sierra Leone joined the East African Community in 2024, potentially formalizing regional trade relationships, but transformation from extractive dependence requires institutional capacity that mineral booms have historically undermined rather than built.