President Joseph Boakai has highlighted significant economic progress under his administration, citing improved growth, reduced inflation, and increased investment in key sectors.
On Monday January 27, giving the State of Nation Address (SONA) President Boakai acknowledged inheriting an economy in steep decline emphasizing the government’s decisive actions to restore stability and drive development.
President Boakai revealed that Liberia’s economy grew at a revised rate of 5.1% in 2024, up from 4.6% in 2023, with mining, agriculture, fisheries, and services as key contributors. Projections indicate that growth will rise to 5.8% in 2025.
“The country also saw a decline in inflation from 10.1% in 2023 to 7.7% in 2024, with further reductions expected in 2025. International reserves have increased to $458.9 million, while the Liberian dollar appreciated by 4.7% against the U.S. dollar,” President Boakai said.
He added that, the Central Bank of Liberia (CBL) lowered the monetary policy rate from 20% to 17%, boosting private sector confidence and increasing credit by 9.1%.
“Our participation in the IMF’s Extended Credit Facility (ECF) will help rebuild reserves, strengthen fiscal policies, and enhance revenue generation,” President Boakai noted. The program has already led to improved tax collection and streamlined exemptions.
“Civil servants were facing extreme hardship due to pay “harmonization” and delayed salary payments, leaving them vulnerable to payday lenders and informal financial schemes like Susu clubs,” he noted.
“We simply did not just recognize these challenges and their impact on our citizens; we took decisive action to increase salary of health workers, the police, and teachers. We have taken steps necessary to restore economic stability; and have made good progress,” he stressed.
The administration has attracted significant international investments, with ongoing negotiations expected to bring over $3 billion into the economy.
The 2025 national budget, totaling $880.7 million, was passed before the fiscal year for the first time in Liberia’s post-war history, ensuring better predictability in government’s spending.
Liberia also saw record-breaking revenue collection in 2024, amassing $734 million, of which $695.3 million came from domestic sources a 12% increase from the previous year. In response, the government allocated $661.4 million for national projects and services.
“The administration has made progress in road infrastructure, ensuring that all road-related revenues were transferred to the Road Fund. Additionally, counties received their County Development and Social Development Funds, reversing years of delays in local development financing,” he mentioned.
“The government introduced Value-Added Tax (VAT) in April 2024, replacing the outdated Goods and Services Tax (GST) to improve tax compliance. Efforts to modernize financial systems have expanded financial inclusion to 52% of the adult population. The National Electronic Payment Switch (NEPS) is also being implemented to transition Liberia toward a cashless economy,” he stated.
“To enhance Liberia’s investment appeal, the administration has simplified regulations, reduced bureaucracy, and strengthened legal frameworks. Special Economic Zones (SEZs) are being established to promote job creation and industrialization,” he explained.
“Recognizing the Roberts International Airport (RIA) as a key economic driver, the government has invested in fire trucks, backup generators, and navigational aids. Ethiopian Airlines’ arrival now connects Liberia to over 150 global destinations, while discussions with Qatar Airways are ongoing for further expansion,” he asserted.
However, he mentioned that, Liberia secured a $210 million IMF financing package, along with $60 million in World Bank support, and a $60 million grant from the European Union for 2025-2027. The African Development Bank contributed $40 million for road projects, and Liberia received $398.2 million in off-budget aid for sectors such as health, agriculture, and infrastructure.
A significant milestone was Liberia’s eligibility for the Millennium Challenge Corporation (MCC) Compact from the U.S. government, a potential gateway to substantial financial aid.
Meanwhile, President Boakai has assured Liberians that his administration remains focused on economic stability, job creation, and social development. Despite global economic challenges, he noted that the cost of essential goods like rice and petroleum has declined, with gasoline prices dropping by 12.53% from $4.47 in January to $3.91 in December 2024.
“As we move forward, our efforts will continue to improve the livelihoods of all Liberians,” President Boakai affirmed.