By Grace Q. Bryant
The Central Bank of Liberia (CBL) says Liberia’s economy remains on a growth trajectory, with a projected expansion of 4.8% in 2024, up from 4.6% in 2023.
According to the Central Bank of Liberia (CBL) latest quarterly bulletin, the positive outlook is attributed to robust activities in the primary sector, particularly in agriculture and fisheries, driven by increased domestic production of rice, rubber, and cassava.
The reports further noted that Liberia’s economy, comprised of primary, secondary, and tertiary sectors, experienced mixed performances across quarters in 2024.
The first two quarters showed strong growth in key commodities, while the third quarter exhibited some moderation.
The combined performance over the three quarters supports the CBL’s 4.8% growth target for the year.
The report noted that inflation has been effectively contained within single digits, with rates recorded at 7.4% in the second quarter, dropping to 6.8% in the third quarter, and a projected 7.6% for the fourth quarter. Categories such as clothing, transport, and education contributed to this moderation.
The CBL’s proactive monetary policy, including a shift to an interest rate-based framework, has been instrumental in stabilizing inflation and boosting public confidence in the financial system.
The policy rate, adjusted from 20% in the first half of the year to 17% by the fourth quarter, further bolstered the Liberian dollar’s stability.
The reports explained that the private sector saw a boost with credit reaching 11% of GDP by October 2024. Major allocations were directed towards trade, personal loans, services, and construction. Through the Liberia Investment Finance and Trade (LIFT) project, the CBL secured a $6 million credit line from the World Bank to support Micro, Small, and Medium Enterprises (MSMEs), facilitating job creation and economic diversification.
The reports emphasized Liberia’s banking system showed resilience in 2024, with total deposits surpassing L$200 billion and post-tax profits of L$7 billion by October.
Despite challenges such as non-performing loans, the sector remains liquid and compliant with regulatory standards.
The introduction of new licenses and enhanced compliance measures further reflect growing investor confidence.
The trade deficit narrowed to US$47.9 million by October 2024, compared to US$134.3 million in the second quarter.
Remittance inflows grew by 14.7%, while the Liberian dollar appreciated modestly by 1.8% (end-period) due to effective liquidity management.
The reports further emphasized that Liberia’s ARREST Agenda under the national development plan is expected to further boost growth, with a 5.6% expansion forecast for 2025.
Key focus areas include expanding electricity access, improving rural roads, and enhancing social programs.
Despite risks posed by global conflicts and potential economic shocks, Liberia’s economy demonstrates resilience.
The CBL’s continued efforts to stabilize inflation, foster private sector growth, and strengthen the financial system offer a promising outlook for the medium term.
The reports highlighted that Liberia’s economy is progressing steadily, underpinned by strong policy interventions and sectorial growth. The focus remains on ensuring macroeconomic stability and inclusive development to support long-term prosperity.
The year 2024 is shaping up to be another milestone for Liberia as it builds on its economic gains while navigating global challenges with confidence.
