Liberia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia
IMF Staff Country Reports, June 19, 2019
Source details
- Canonical URL
- Liberia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia
Other formats
Bibliographic details
- Published: June 19, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498320467.002
Executive summary and country context
- Liberia remains a fragile, post-conflict country with weak capacity and limited physical and human capital accumulation.
- External assistance to Liberia is winding down from its peak in 2016.
- The government launched the Pro-Poor Agenda for Prosperity and Development (PAPD) to focus on physical and human capital accumulation.
- Policy uncertainty and slippages over the past two years imposed a significant toll on the economy.
- Higher fiscal deficits and accommodative monetary policy have led to rapid depreciation of the Liberia dollar and increased inflation, eroding the purchasing power of the poor.
Major macroeconomic developments and risks
- Fiscal policy: higher fiscal deficits contributed to macroeconomic strain.
- Monetary policy: accommodative stances compounded pressures on the currency and prices.
- Exchange rate and inflation: rapid depreciation of the Liberia dollar and increased inflation weakened real incomes, particularly for the poor.
- External financing: tapering of external assistance since its 2016 peak increases vulnerability to financing gaps.
Policy implications and priorities (implicit in staff assessment)
- Strengthen fiscal consolidation to reduce deficits and restore macroeconomic stability.
- Tighten monetary policy or coordinate policies to stabilize the Liberia dollar and stem inflationary pressures.
- Advance PAPD implementation to rebuild physical and human capital while protecting the poor from eroding purchasing power.
- Manage the winding down of external assistance with a strategy to mobilize sustainable domestic and alternative external financing.
Publication and document metadata
- Publication title: Liberia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia
- Publication date: June 19, 2019
- Pages: 92
- Volume: 2019
- Issue: 169
- Series: Country Report No. 2019/169
- DOI: https://doi.org/10.5089/9781498320467.002
- Stock No: 1LBREA2019001
- ISBN: 9781498320467
- ISSN: 1934-7685
Subjects and keywords
- Subjects: Banking, Currencies, Debt sustainability analysis, External debt, Money, Public and publicly-guaranteed external debt, Public debt
- Keywords: CBL bill, CBL financing, CBL lending to government, CR, Currencies, Debt sustainability analysis, financing gap, Global, government, IMF staff estimate, ISCR, Liberian authorities, monetary policy, Public and publicly-guaranteed external debt
International Monetary Fund. Liberia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia (June 19, 2019).
Content in this bundle
- 1lbrea2019001