Published: June 20, 2025
MONROVIA, Liberia – A delegation from the International Monetary Fund (IMF) has concluded a two-week mission to Liberia, lauding the government’s fiscal reforms while cautioning against economic headwinds stemming from reduced foreign aid and global uncertainties.
The team, led by IMF Mission Chief Daehaeng Kim, visited Monrovia from June 4 to 17 to carry out the 2025 Article IV Consultation and conduct the Second Review under the Extended Credit Facility (ECF) arrangement. The discussions centered on recent macroeconomic developments, medium-term policy priorities, and the performance benchmarks agreed under the ECF-supported program.
At the end of the visit, Kim commended Liberian authorities for their strong commitment to macroeconomic stability and reform despite external and domestic challenges.
“The authorities have continued to make progress in maintaining macroeconomic stability, and their commitment to reform remains strong,” Kim said in a statement. “A significant reduction in unproductive expenditures combined with recovery of tax revenues contributed to an impressive fiscal outturn.”
According to the IMF, Liberia’s primary fiscal balance swung from a deficit of 4.2 percent of GDP in 2023 to a surplus of 1.3 percent in 2024. However, economic activity in 2024 was tempered by sluggish mining operations and tighter fiscal conditions. Inflation, which peaked at 13.1 percent in February 2025, dropped to 11.7 percent by May, primarily due to easing domestic food prices.
The current account also showed significant improvement, suggesting a narrowing trade deficit. Overall, program performance was described as “broadly satisfactory.”
Looking ahead, the IMF has slightly revised Liberia’s medium-term growth projections downward, citing the abrupt halt in aid flows and a less favorable global economic environment. Nonetheless, the Fund noted optimism that Liberia’s economy will recover on the back of renewed mining operations, agricultural revitalization, and expansion in manufacturing and services sectors.
“Inflation is projected to return to single digits,” Kim noted, attributing the forecast to prudent fiscal and monetary policies and anticipated declines in global food and oil prices. The debt-to-GDP ratio, he added, remains sustainable.
The Article IV discussions also focused on structural reforms aimed at addressing development challenges, building resilience to climate risks, and promoting private sector growth to foster inclusive and diversified economic expansion.
Kim confirmed that the IMF team and Liberian authorities reached understandings on most of the key macroeconomic policies for the Second ECF Review. A few outstanding issues remain and will be resolved through virtual consultations in the coming weeks with the aim of finalizing a staff-level agreement.
During the visit, the IMF team met with key stakeholders, including Minister of Finance and Development Planning Augustine K. Ngafuan, Central Bank Executive Governor Henry F. Saamoi, members of the national legislature, development partners, private sector representatives, and civil society organizations.
The mission concluded with IMF staff expressing appreciation for what it called “warm hospitality and constructive engagement” from Liberia’s authorities and partners.
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