## 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](https://www.imf.org/en/publications/cr/issues/2019/06/19/liberia-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-47002)

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## Bibliographic details
- Published: June 19, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498320467.002

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### 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).*

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_Source: https://www.imf.org/en/publications/cr/issues/2019/06/19/liberia-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-47002_