IMF Staff Concludes Staff Visit to Liberia
IMF News, June 17, 2025
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- Published: June 17, 2025
Mission purpose and timing
- An IMF staff team, led by Mr. Daehaeng Kim, Mission Chief for Liberia, visited Monrovia from June 4 – 17, 2025.
- Purpose: to conduct the 2025 Article IV Consultation and the Second Review under the Extended Credit Facility (ECF) arrangement.
- This mission will not result in a Board discussion.
Key macroeconomic findings and program performance
- 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.
- Overall, program performance has been broadly satisfactory.
Fiscal outcomes and public finances
- A significant reduction in unproductive expenditures combined with recovery of tax revenues contributed to an impressive fiscal outturn.
- Primary fiscal balance: improved from a deficit of 4.2 percent of GDP in 2023 to a surplus of 1.3 percent of GDP in 2024.
Inflation, current account, and external position
- 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.
- The current account is expected to narrow further.
- Debt dynamics: debt-to-GDP remains on a sustainable path.
Medium-term outlook and growth drivers
- The medium-term outlook has been marked down due to the sudden stop of aid flows and less favorable global environment.
- Growth outlook supported by:
- a rebound in mining activity,
- a recovery in agriculture,
- 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.
Policy dialogue, reforms, and ECF review
- Article IV policy dialogue focused on:
- structural reforms to tackle significant development needs,
- mitigating climate risks,
- promoting private sector growth and economic diversification to achieve sustained and inclusive growth.
- IMF staff and the authorities have reached understandings on most key macroeconomic policies for the second review of the ECF arrangement.
- Discussions on a few outstanding issues will continue virtually, with the goal of finalizing the staff level agreement (SLA) in the coming weeks.
Engagements and acknowledgments
- The team met with the leadership of the national legislature, Minister of Finance and Development Planning Mr. 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.
- IMF staff expressed gratitude to the authorities and all other counterparts for their warm hospitality and constructive engagement.
Press Release No. 25/200; June 17, 2025.