Sierra Leone

The first review of the ECF was delayed amid program slippages last year. The authorities exceeded the 2024 budget deficit by a sizable margin, and the BSL helped finance the overruns. At the same time, higher-than-expected government spending on imports and energy subsidies substantially depleted the BSL’s foreign exchange reserves. The authorities have since tightened policies, contributing to a sustained decline in inflation and a welcome fall in borrowing costs. However, pressures on reserves remain unabated.