The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper aims to measure the impact of the Ebola virus disease (EVD) epidemic on economic growth in Sierra Leone. A novel empirical approach is used, which is based on a Difference in Differences setup, called the Synthetic Control Method. The model suggests that EVD had a severe impact on growth. In 2014, the first year EVD hit the country, the impact on real growth excluding iron ore is estimated to be more than 5 percentage points. It is suggested that in outer years, the severity of the impact will lessen, and growth will converge to its normal path by 2018.