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By Lincoln G. Peters
The International Monetary Fund (IFM), through its Staff team, has expressed appreciation and pleasant opinion regarding Liberia’s economic outlook, following conclusion of a consultative visit to Monrovia.
The IMF staff team, headed by Mr. Daehaeng Kim, Mission Chief for Liberia, visited Monrovia from June 4 – 17, 2025. The objective of the visitation is to conduct the 2025 Article IV Consultation and the Second Review under the Extended Credit Facility (ECF) arrangement.
The group, in its statement, disclosed that the Policy dialogue under the Article IV Consultation focuses on structural reforms to tackle significant development needs, mitigate climate risks, and promote private sector growth and economic diversification to achieve sustained and inclusive growth.
During its visit here, the team met with leadership of the 55th Liberian Legislature, Minister of Finance and Development Planning, Augustine K. Ngafuan, Executive Governor of the Central Bank of Liberia, Mr. Henry F. Saamoi, senior government officials, development partners, representatives of the private sector, and civil society.
Following the conclusion of the Staff visit to Liberia, the team issued a press statement but clarified that the end-of-mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country.
Henceforth, the views expressed in the statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board; therefore, the mission will not result in a Board discussion.
The IMF Staff team, in its press release dated June 17, 2025, cataloged the visit and discussion held with relevant stakeholders and institutions.
Meanwhile, the team led by Mr. Kim in a press statement said that the IMF staff held engaging and constructive discussions with Liberian authorities on recent macroeconomic developments, economic outlook, and medium-term policy priorities under the Article IV Consultation, as well as the performance and policies supported by the Extended Credit Facility arrangement.
“IMF staff and the Liberian authorities have reached an understanding on most key macroeconomic policies for the second review of the ECF arrangement. Discussions on a few outstanding issues will continue virtually, to finalize the staff level agreement (SLA) in the coming weeks. IMF staff express its gratitude to the authorities and all other counterparts for their warm hospitality and constructive engagement”, the statement noted.
The team noted that during conversations here, it established that the Liberian authorities have continued to make progress in maintaining macroeconomic stability, and their commitment to reform remains strong.
“Slow mining activity and fiscal adjustment were key factors that moderated economic activity in 2024. A significant reduction in unproductive expenditures combined with recovery of tax revenues contributed to an impressive fiscal outturn, with the primary fiscal balance improving from a deficit of 4.2 percent of GDP in 2023 to a surplus of 1.3 percent of GDP in 2024. Inflation reached 13.1 percent in February 2025, driven primarily by domestic food prices, but has come down to 11.7 percent in May. The current account has improved significantly. Overall, program performance has been broadly satisfactory”, the statement pointed out.
The group further indicated that the medium-term outlook of Liberia has been marked down due to the sudden stop of aid flows and less favorable global environment.
Also, the growth outlook of Liberia is supported by a rebound in mining activity, a recovery in agriculture, and sustained growth in manufacturing and services.
“Inflation is projected to return to single digits, supported by prudent fiscal and monetary policies and projected lower global food and crude oil prices. The current account is expected to narrow further, while the debt-to-GDP remains on a sustainable path”, the statement concluded. Editing by Jonathan Browne
