Published: January 27, 2025
MONROVIA – Liberia’s economy is on the rebound, President Joseph Nyuma Boakai announced during his State of the Nation Address, highlighting record-breaking revenue collections, a 5.1% GDP growth rate, and reduced inflation as hallmarks of his administration’s ARREST Agenda for Inclusive Development.
President Boakai recalled the dire economic state his administration inherited, marked by double-digit inflation, surging debt, and stagnating growth. “When we assumed leadership, Liberia faced unprecedented hardships, with inflation at 10.1%, a current account deficit of 26.4% of GDP, and dangerously low reserves,” he said.
Under the ARREST Agenda, 2024 marked a turning point. Inflation dropped to 7.7% by year’s end, international reserves swelled to $458.9 million, and the Liberian dollar appreciated by 4.7%. These improvements, alongside fiscal reforms, strengthened financial stability, while private sector credit grew by 9.1%. Boakai attributed much of the progress to sound policies and Liberia’s participation in the International Monetary Fund’s Extended Credit Facility (ECF).
Historic Revenue Gains
A major highlight in his address was Liberia’s record-breaking $695.3 million domestic revenue collection in 2024, representing 12% growth and the highest in the nation’s history. The administration introduced the Value-Added Tax (VAT) and modernized tax systems to improve compliance and expand the tax base. Boakai also celebrated the timely passage of the 2025 national budget, worth $880.7 million, ensuring predictable and efficient public spending for the first time in post-war Liberia.
The President emphasized his commitment to empowering counties, citing the disbursement of County Development and Social Development Funds that had long been withheld. “These funds will transform local governance and development,” Boakai said.
Infrastructure and Energy Expansion
Road and energy infrastructure were spotlighted as pillars of growth. Boakai detailed the rehabilitation of 783 kilometers of major roads, improving connectivity between key regions and lowering commodity prices. Paving projects like the Sanniquellie to Logatuo road and the RIA road expansion are progressing, alongside planned bridgeworks and corridor enhancements.
Energy access has also expanded, with a 20-megawatt solar power plant under construction in Harrisburg and electricity tariffs reduced for rural counties. These efforts aim to electrify 100,000 households annually and achieve a 75% access rate by 2030.
Investment Climate and Economic Diversification
President Boakai revealed that Liberia is negotiating over $3 billion in new investments across energy, mining, and agriculture. Special Economic Zones are also being developed to spur job creation and economic diversification.
Efforts to modernize Roberts International Airport, including securing Ethiopian Airlines as a major carrier and ongoing talks with Qatar Airways, are positioning Liberia as a regional hub for commerce and travel.
Tackling Inflation and Lowering Costs
The administration’s interventions in the commodities market have yielded notable results. Rice prices fell early in Boakai’s term, and the price of Premium Motor Spirit dropped by 12.53% over the course of 2024.
“We’ve taken concrete steps to stabilize living conditions for Liberians,” Boakai declared, pointing to steady declines in the costs of essentials.
Vision for Growth
Boakai unveiled the $8.4 billion ARREST Agenda as a transformative plan to diversify the economy, prioritize human capital, and improve infrastructure. Funded by government revenues, international donors, and private investments, the agenda aims to drive inclusive growth.
“We are committed to an equitable and resilient economy that uplifts all Liberians,” the President said, emphasizing progress made in just one year of his leadership.
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