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Liberia Economic Outlook


Liberia's economic outlook is positive, with real GDP growth projected to increase to 4.7% in 2019 and 4.8% in 2020, underpinned by modest growth in agriculture, fisheries, and services. Inflation is expected to decrease further to 10.5% in 2019 and 9.5% in 2020 because of a stable exchange rate, prudent monetary and fiscal policies, and a modest increase in domestic food production. The current account deficit is expected to remain slightly above 22% in both 2019 and 2020.

A moderate increase in revenues, combined with a decrease in spending, reduced the fiscal deficit to 3.9% in 2018 from 7.9% of GDP in 2017. Liberia remains at a moderate risk of debt distress. Total public debt was 41.3% of GDP in 2017, about 69.6% of which (or 29% of GDP) was external.

The economic outlook is positive, with real GDP growth projected to increase to 4.7% in 2019 and 4.8% in 2020, underpinned by modest growth in agriculture, fisheries, and services. Inflation is expected to decrease further to 10.5% in 2019 and 9.5% in 2020 because of a stable exchange rate, prudent monetary and fiscal policies, and a modest increase in domestic food production. The current account deficit is expected to remain slightly above 22% in both 2019 and 2020.

The country is undertaking various structural reforms toward accelerated, inclusive, and sustainable development. Expanding and improving the road network are priorities, including a plan to pave at least 650 kilometers of primary roads in the next 5 years. Increasing access to affordable energy and water and sanitation is also at the top of the agenda.

Infrastructure development, based on establishing special economic zones, is essential for industrialization. Building young people’s skills will boost their employment.

Courtesy: AfDB