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Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone

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Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone Statistics Sierra Leone Sierra Leone Balance of Payment Bulletin 2013 Volume I Economic Statistics Division Statistics Sierra Leone December, 2014 TABLE OF CONTENTS Page Table of Contents……………………………………………………………………………………………………..……. i List of Tables……………………………………………………………………………………………….……….………… iii List of Figures……………………………………………………………………………………………………….……….. Iii Abbreviations…………………………………………………………………………………………………….………….. iv Acknowledgement………………………………………………………………………………………………….……… v Executive Summary…………………………………………………………………………………………….…………. vi 1.0 Introduction……………………………………………………………………………………………………. 1 2.0 Conceptual Framework…………………………………………………………………………………… 2 2.1 Definitions……………………………………………………………………………………………………...... 2 2.2 Double-entry system……………………………………………………………………………………..….. 2 2.3 Concept of territory and residence……………………………………………………………..…….. 3 2.4 Valuation……………………………………………………………………………………………………..……. 4 2.5 Unit of Account…………………………………………………………………………………………..…….. 4 2.6 Time of recording…………………………………………………………………………………………..…. 4 3.0 Classification System………………………………………………………………………………….….. 6 3.1 Current Account………………………………………………………………………………………………… 6 3.2 Capital Account…………………………………………………………………………………………..…….. 7 3.3 Financial Account…………………………………………………………………………………………..…. 8 3.4 Net errors and omissions……………………………………………………………………………..…… 9 3.5 Transfers………………………………………………………………………………………………….………. 9 3.6 Flows and stocks……………………………………………………………………………………..………… 10 3.7 Income……………………………………………………………………………………………………..…….... 10 3.8 Current transfers……………………………………………………………………………………..……….. 10 3.9 Direct Investment……………………………………………………………………………………..………. 11 3.10 Portfolio investments………………………………………………………………………………….……… 11 3.11 Financial derivatives……………………………………………………………………………….….……… 11 3.12 Other investments……………………………………………………………………………………………… 12 3.13 Overall balance………………………………………………………………………………………………….. 12 3.14 Reserves and Financial Items……………………………………………………………………….…….. 12 3.15 Other financing items………………………………………………………………………………………… 13 3.16 International Investment position……………………………………………………………………… 13 4.0 Nature of Data Source…………………………………..…………..…………………………………… 14 4.1 Exports and imports of goods……………………..…………………………………………………….. 14 i Sierra Leone Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone 4.2 Services……………………………………………………………………………………………………………... 14 4.3 Income………………………………………………………………………………..…………………………….. 14 5.0 Sierra Leone BOP and International Investment Position………..………….…………. 15 5.1 The connection to the International Investment Position …….…………………………… 19 6.0 Monetary Developments……………..………………………………………………………..………. 20 6.1 Monetary development in Sierra Leone…………………………………………………………….. 21 6.2 Concluding remarks……………………………………………………………………………………….…… 25 7.0 Statistical Annex…………………………….………………………………………………………………. 27 8.0 Bibliography………………………………………………………………………………...…………………. 42 ii Sierra Leone Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone List of Tables Page Table 1: Current account balance components………………………………………………………. 28 Table 2: Overall Balance of payment………………………………………………………………………. 28 Table 3: Primary and Secondary income balance……………………………………………………. 29 Table 4: Current account balance as percentage of GNI…………………………………………. 30 Table 5: Current account balance as percentage of GDP………………………………………… 30 Table 6a: Merchandise trade trend (Thousand US $)……………………………………………….. 31 Table 6b: Merchandise trade trend (LE’) …………………………………………………………………. 32 Table 7a: Domestic exports of primary commodity (Thousand US $)………………………… 33 Table 7b: Domestic exports of primary commodity (LE’M)……………………………………….. 34 Table 8a: Imports of principal commodity (Thousand US$)………………………………………. 35 Table 8b: Imports of principal commodity (LE’M)……………………………………………………… 36 Table 9: Monetary supply and components……………………………………………………………. 37 Table 10: External Debt (USD’M)………………………………………………………………………………. 38 Table 11: Standard BOP presentation format……………………………………………………………. 39 List of Figures Figure 1: Yearly trend trade levels of imports and exports………………………………………. 15 Figure 2: Overall balance of payments……………………………………………………………………… 16 Figure 3: Current account balance as percentage of GNI…………………………………………. 17 Figure 4: The trend of level of BOP………………………………………………………………………….. 17 Figure 5: Trends in income (net) and Current transfers (net)…………………………………… 18 Figure 6: Money supply……………………………………………………………………………………………. 23 Figure 7: Money supply and GDP…………………………………………………………………………….. 23 Figure 8: Velocity of money……………………………………………………………………………………... 24 Figure 9: Composition of external debt (USD’M)…………………………………...................... 24 Figure 10: External Debt sustainability to GDP…………………………………………………………… 25 iii Sierra Leone Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone ABBREVATIONS BOP Balance Of Payment BPM4 Balance Of Payment Manual Fourth Edition BPM5 Balance Of Payment Manual Fifth Edition CAB Current Account Balance CAS Capital Account Survey c.i.f Cost, Insurance And Freight CPI Consumer Price Index f.o.b Free On Board EU European Union FDI Foreign Direct Investment GDP Gross Domestic Product GNI Gross National Income IIP International Investment Position IMF International Monetary Fund ISIC International Standard Industrial Classification OIC Oversea Investment Commission OECD Organization For Economic Co-Operation And Development SNA System Of National Accounts SSL Statistics Sierra Leone SDR Special Drawing Rights iv Sierra Leone Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone ACKNOWLEDGEMENT This document describes the conceptual framework of Sierra Leone’s balance of payments statistics, and international investment positions data sources and compilation methods. Its purpose is to assist users understand the Balance of Payments Statistics and international investment position statement. This is the first edition of this publication. Sierra Leone’s balance of payments statistics and international investment position statistics are compiled based on the IMF’s fifth edition of the Balance of Payments Manual (BPM5). However, plans to migrate to the sixth edition (BPM6) are underway. The balance of payments statistics are compiled and disseminated for both calendar and fiscal years in the Bank of Sierra Leone’s publication (Annual Report). The Bank of Sierra Leone also disseminates quarterly balance of payments statement in its quarterly publication (Quarterly Report). Monthly estimates of the balance of payments statistics are compiled for the analysis of external sector developments and to guide the formulation of monetary and external sector policies and are only available for internal use. The international investment position statement is published on a calendar year basis but plans are underway to provide quarterly and fiscal year estimates. The figures in both the balance of payments and international investment position statements are in millions of Leones. From time to time, particular concepts, sources or methods used in compiling the balance of payments will change or get modified in light of reviews or other developments. Users will be advised of these changes. I recognize the immense contribution made by Mr. Abu Bakarr Turay, Director, Economic Statistic Division and the National Accounts Statistics Section staff; Mr. Osman A. Soltani Koroma, Ms. Clementina Akran , Mr. Ibrahim Samura and Mr. Abdul Aziz Renner, and all Statistics Sierra Leone staff in the data collection, processing, drafting and finalization of this report; the numerous organizations, both public and private institutions especially the Central Bank (Bank of Sierra Leone), which provided basic data used in the compilation of the aggregates presented in this report. Thanks also goes to Mr. Jinnah Jusu Ngobeh, Head of Foreign Trade Statistics Section for his valuable contribution and comments while supervising the compilation of this bulletin. Finally, we are very grateful to the Government of Sierra Leone for funding the exercise. Mohamed King-Koroma Statistician General v Sierra Leone Balance of Payment Bulletin 2013 - Volume I | Statistics Sierra Leone EXECUTIVE SUMMARY The Sierra Leone economy has continued to recover in 2012 from the financial and economic crisis of 2009. Real gross domestic products (GDP) estimates show that the economy grow by 15.2 percent in 2012, which is a leap compared with 5.8 percent growth rate recorded in 2011. These accelerated growth rates are supported mainly by the production of iron ore as well as efforts in the agriculture and service industries. As an open economy, Sierra Leone trades both in goods and services with other countries. This means that the country is open to inflows and outf1ows of financial and fixed capital investment, with large dependence on imports of both capital or investment and consumption goods. Primary commodities are the main source of foreign exchange for the country. In 2010, the Balance of Payments of Sierra Leone continued to be characterized by a high current account deficit, mainly caused by the persistently low level of exports compared to imports. However, compared to the previous periods, current account deficit has marked a decline. Besides the decrease in imports, the lower current account deficit is also attributed to the higher deficit in the services account. A sharper decline is recorded in current transfers due to the lower inflows in remittances. The current account deficit has narrowed from (Le8, 370,818) million Leones 2011 to (Le4, 921,448)
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