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This paper analyzes the behavior of current account deficits in Africa and estimates whether the deficits are excessive with respect to fundamentals. The findings are the deficits are (i) not very persistent; (ii) positively linked with domestic growth; (iii) strongly linked with public (and private) savings, suggesting that fiscal consolidation in IMF-supported programs may be relatively effective; (iv) linked with aid flows, so as to close the external gap, and (v) linked with currency depreciation and the terms of trade. The deficit is "excessive," as it is almost 3 percent of the gross national disposable income above the equilibrium level.

Exports and Imports --- Macroeconomics --- International Finance: General --- Current Account Adjustment --- Short-term Capital Movements --- Macroeconomic Aspects of International Trade and Finance: General --- Macroeconomics: Consumption --- Saving --- Wealth --- Empirical Studies of Trade --- International economics --- Current account deficits --- Current account --- Private savings --- Terms of trade --- Current account balance --- Balance of payments --- National accounts --- International trade --- Saving and investment --- Economic policy --- nternational cooperation --- Sierra Leone