The Central Bank of Liberia published an International Monetary Fund staff statement issued after the IMF mission to Monrovia for the 2025 Article IV Consultation and the second review under Liberia’s Extended Credit Facility arrangement. The statement said Liberia’s authorities have continued to make progress in maintaining macroeconomic stability and that program performance has been broadly satisfactory, with IMF staff and the authorities reaching understandings on most key macroeconomic policies for the second review. The IMF highlighted a stronger fiscal position in 2024, with the primary fiscal balance improving from a deficit of 4.2 percent of gross domestic product in 2023 to a surplus of 1.3 percent in 2024, driven by lower unproductive spending and a recovery in tax revenues. It also pointed to an easing in inflation from 13.1 percent in February 2025 to 11.7 percent in May and a significant improvement in the current account. At the same time, the medium-term outlook was marked down because of a sudden stop in aid flows and a less favorable global environment, although growth is expected to be supported by a rebound in mining, a recovery in agriculture and continued expansion in manufacturing and services. Policy discussions also covered structural reforms to address development needs, climate risks, private sector growth and economic diversification. Discussions on a small number of outstanding issues will continue virtually, with the aim of finalizing a staff-level agreement in the coming weeks.
Central Bank of Liberia2025-06-18
Central Bank of Liberia publishes IMF mission update showing progress toward second Extended Credit Facility review
The Central Bank of Liberia published an IMF staff statement saying Liberia’s performance under the Extended Credit Facility has been broadly satisfactory and that understandings have been reached on most key policies for the second review. The statement highlighted a stronger 2024 fiscal outturn, easing inflation and an improved current account, while lowering the medium-term outlook because of halted aid flows and a weaker global environment. Talks on remaining issues will continue virtually with the aim of reaching a staff-level agreement in the coming weeks.