IPNEWS: The International Monetary Fund (IMF) says as part of it 2025 Article IV Consultation and Second Review under the Extended Credit Facility (ECF), has conclude that Liberia
has made notable progress in its economic performance and reforms.
According to the IMF report, Real Gross Domestic Product (GDP) growth for Liberia is projected at 4.6% for 2025, While a downgrade from earlier forecasts, the growth is considered strong and is projected to accelerate to 5.4% in 2026.
The government has successfully restored fiscal discipline and improved macroeconomic stability, crucial for a stable economic environment.
The fiscal deficit was significantly reduced to 2.0% of GDP in 2024 from 7.1% in 2023, largely due to spending cuts and improved domestic revenue.
The IMF also notes that the public debt-to-GDP ratio has started to decline, and the government’s fiscal consolidation efforts are expected to keep debt on a sustainable path.
The current account deficit is narrowing, thanks to increased exports, particularly from the mining sector, and lower imports. Foreign direct investment is also contributing to deficit coverage.
Under this framework, the IMF recently approved a disbursement of about $26.5 million in early October 2025 to strengthen Liberia’s international reserve position.
Key challenges and areas for improvement
The IMF has however, urged Liberia to address persistent issues, including weak financial institutions and widespread corruption.
The Liberian economy remains vulnerable due to its heavy reliance on extractive exports like iron ore and rubber. Diversification is needed to create a more resilient economy. The IMF stressed the need to increase domestic revenue to fund development projects and reduce reliance on external aid, including implementing a value-added tax (VAT).
The forecast additionally, states that Consumer prices are projected to increase by 9.8% in 2025, however, Global uncertainties, such as commodity price volatility and economic slowdowns, could pose risks to Liberia’s positive economic trajectory.
Meanwhile, in a bid to strengthen Liberia’s public financial management systems, two visiting officials from the International Monetary Fund (IMF) have held high-level discussions with Representative Micheal Thomas, Co-Chair for Expenditure of the House Committee on Ways, Means, and Finance.
The meeting, which took place at the Capitol Building, centered on Liberia’s ongoing efforts to align its Chart of Accounts (CoA) and budget classification with international standards, particularly the Government Finance Statistics Manual 2014 (GFS 2014). The IMF delegation included Mr. Ilyas Tufan, Regional Advisor for Public Finance Management, and Dr. Wayne Bartlette, Managing Director of Phoenix Accounting Consultancy Ltd.
