World
Updated : Sep 11, 2014, 10:15 AM IST
Sierra Leone has cut its 2014 economic growth forecast to 7 or 8 % as an Ebola outbreak cripples business in the iron ore-exporting West African country, the government said on Wednesday.
The economic outlooks for Guinea and Liberia, two other mining-dependent West African countries also fighting Ebola, were lowered by Standard Chartered Bank.
Sierra Leone, Guinea and Liberia are among the poorest countries in the region and the hardest-hit by the worst Ebola epidemic on record, which has killed nearly 2,300 people.
Sierra Leone Finance Minister Kaifala Marah told Reuters that a previous target of 11.5 % economic growth this year was "unachievable in the face of the Ebola outbreak".
"Revenue is dropping [because] many of the big businesses are folding up," he said, estimating that the government had lost US$ 60 million in revenue in the last three months as activity in the mining and tourism sectors dried up.
The end of Sierra Leone's war just over a decade ago led to large scale investment from mining companies like African Minerals
Peace and pristine beaches brought nearly 60,000 visitors last year through the country's nascent tourist industry.
But the impact of the disease and restrictions imposed to fight it are being felt across the region.
Standard Chartered said Liberia's economy was expected to grow at 4 %, missing a 5.9 % target, largely due to mining companies suspending operations and delaying investment.
It said Ebola would add to political uncertainty and power cuts in Guinea, where economic growth was likely to slip to 2.5 % from a forecast 4.5 %.
"As these countries are mining-dependent, growth revisions come on the back of expected production shortfalls," Standard Chartered said.
"Disruptions to agricultural value chains are also considerations. The consequent price pressures could accelerate inflation into double digits by year-end," Standard Chartered said.
The World Health Organisation has warned that Ebola may infect up to 20,000 people in West Africa.