Liberia forecasts 5.8% growth by 2025

The Government of Liberia is optimistic about moving national growth to 5.8% by next year.

Monrovia, Liberia, July 19, 2024 –The Ministry of Finance and Development Planning is projecting Liberia’s economic growth to accelerate from 5.2% in 2024 to 5.8% in 2025.

Acting Minister of Finance and Development Planning, Anthony G. Myers, provides a mid-year update on Liberia’s economy, forecasting a 5.1% growth for 2024.

Minister Myers attributes this growth to robust performances in key mining, agriculture, fishing, and services sectors.

He highlights that economic activity is expected to increase due to strong growth in mining, expansion of the service sector, significant infrastructure investments by development partners, and improved electricity supply.

Minister Myers emphasizes ongoing structural reforms, including investments in roads and public infrastructure to modernize the economy.

He expresses confidence that with the forthcoming national development plan, more development partners will contribute to ensuring stable economic performance from 2025 to 2029.

Further elaborating, the Minister notes that inflation, as an economic performance indicator, has significantly slowed and is projected to be 7.0% by the end of 2024. He also highlights the stabilization of prices in the Liberian market and forecasts a further decline to 5.0% by 2027.

He notes and adds, “The Ministry of Finance is implementing several monetary measures to stabilize the exchange rate, which is a key factor driving inflation and commodity prices. “The escalating prices witnessed in recent years have now been brought under control, resulting in an anticipated single-digit inflation rate by the end of this year. 

On the budget rollout, Minister Myers assures that tax revenues are on track, revealing that the Liberia Revenue Authority’s total receipts as of the end of the June 2024 fiscal year were $342.6 million, while cash on hand amounted to $315.4 million, with interim receipts totaling $27.2 million.

The Acting Minister of Finance discloses that the highest revenues were generated from taxes on income and profits (US$137.2 million) and taxes on international trade (US$108.8 million).

Minister Myers expresses optimism about the country’s economic future, reaffirming the government’s commitment to sustainable growth and development through reforms and strategic investments.

Regarding expenditures, Myers reports that as of June this year, the government had disbursed $255.4 million of the $315.4 million collected by the Liberia Revenue Authority.

Discussing President Joseph Nyuma Boakai’s efforts toward fiscal decentralization, pointing to recent verifications of provisions under the Revenue Sharing Law applicable to County Service Centers. He says counties would retain 40% of generated revenues by the law.

Myers underscores the President’s directive on fiscal decentralization, part of ongoing administrative reforms, including the establishment of County Councils. To advance this initiative, he announces plans to appoint a Local Government Finance Commission tasked with setting annual spending caps for counties.

He further discloses that ten ministries and agencies have agreed on the budget breakdown, strengthening county finances through accessible checks and vouchers processed locally.

He announced significant progress in preparing the National Development Plan, Public Sector Investment Plan, and District Development Plan, which are led by two Liberian think tanks. Consultations for these plans are set to commence shortly.

Additionally, the Ministry of Finance has finalized plans with the General Audit Committee to conduct an audit of the Ministry of Finance and Development for the period January 1, 2022, to January 31, 2024, Myers revealed here in a special press briefing on Wednesday, July 17, 2023, in Monrovia. Editing by Jonathan Browne