Liberia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia
IMF Staff Country Reports, July 20, 2016
Source details
- Canonical URL
- Liberia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia
Other formats
Bibliographic details
- Published: July 20, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498371544.002
Overview
- The consultation highlights that the Ebola epidemic and the fall in commodity prices have revealed the vulnerabilities of Liberia’s economy.
- After barely positive growth in 2014, GDP was flat in 2015 mainly owing to the decline in activity in the iron ore and rubber sectors.
- In 2016, growth is expected to rise to 2.5 percent, thanks to a rebound in services and the start of gold production.
- Inflation is expected to stay in the single digits.
Economic performance and key statistics
- GDP: flat in 2015 after barely positive growth in 2014.
- Growth projection for 2016: 2.5 percent.
- Inflation: expected to stay in the single digits.
- International gross reserves: increased in 2015.
- Central Bank of Liberia’s net foreign exchange position: declined in 2015 owing to operational deficits and exceptional support to the banking sector.
Sectoral developments
- Iron ore sector: decline in activity contributed to flat GDP in 2015.
- Rubber sector: decline in activity contributed to flat GDP in 2015.
- Services sector: expected rebound supporting 2016 growth.
- Mining (gold): start of gold production expected to contribute to 2016 growth.
Fiscal, monetary, and external vulnerabilities
- The Ebola epidemic and the fall in commodity prices exposed economic vulnerabilities.
- Operational deficits and exceptional support to the banking sector reduced the Central Bank’s net foreign exchange position despite higher international gross reserves in 2015.
Subjects and keywords (as provided)
- Subject: Banking, Commodity prices, Foreign exchange, National accounts, Prices, Public debt, Revenue administration
- Keywords: Africa, authority, commodity price decline, Commodity prices, CR, deficit, Ebola epidemic, GDP, Global, ISCR, Liberian authorities, revenue weakness, stronger-than-expected commodity price impact, West Africa