By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE) – International Monetary Fund (IMF) Friday said Sierra Leone’s Real Gross Domestic Product (GDP) is expected to grow by 14 percent (14%).

This is coming on the heels of an IMF mission led by Malangu Kabedi-Mbuyi visit to carry out follow-up discussions on Sierra Leone’s economic and financial program for 2013–16 under the Extended Credit Facility (ECF).

“Economic prospects for 2014 are encouraging, real GDP growth is forecast at 14 percent” Kabedi-Mbuyi said.

Also, Sierra Leone’s inflation rate is expected to decline further, and the current account deficit of the balance of payments is projected to narrow to 10.5% of non-iron ore GDP (19.1% in 2013), while reserve coverage would improve to 3.4 months of imports.

According to the IMF, revenue collection efforts are expected to continue to increase fiscal space for priority spending, while the overall budget deficit is projected at 4.5% of non-iron ore GDP.

The IMF said key structural reform areas for the country include: private sector development, financial sector development and access to financial services for small- and medium-sized enterprises, and public financial management.

“The mission and the Sierra Leonean authorities agreed that to consolidate progress made in recent years toward macroeconomic stability, and enhance prospects for broad-based and inclusive economic growth, it would be critical to maintain prudent and sound economic policies, advance structural reforms, and develop social protection systems. The authorities reiterated their commitment to fiscal discipline, tight monetary policy in support of single-digit inflation, and prudent borrowing,” Kabedi-Mbuyi said.

The IMF mission said preliminary data indicate that Sierra Leone’s macroeconomic developments were positive in the first half of 2013.

Also, it said economic activity was strong and consumer price inflation declined, while in the fiscal area, revenue performance exceeded expectations, and expenditure execution was consistent with budgetary appropriations.

“These developments augur well for the 2013 projections that set growth of real GDP at about 13%; the inflation rate at 9%; and the overall budget deficit at 3.1% of non-iron ore GDP,” Kabedi-Mbuyi affirmed.