The report maintains that real GDP growth eased to 4.0 percent in 2024 from 4.7 percent in 2023, reflecting a slowdown in industrial output that offset gains in agriculture and services.
Monrovia — The World Bank has released the sixth edition of its annual Liberia Economic Update with a startling revelation of how the issue of unemployment remains a matter of key concern to the nation.
By Emmanuel Weedee-Conway
The report titled: “From Stabilization to Inclusion – Pathways to Resilient Growth and Productive Jobs,” focuses on Liberia’s recent economic developments, analyzes the status of the private sector and how it can be strengthened to deliver productive jobs.
It indicates that Liberia’s economy showed stronger fundamentals in 2024, marked by tighter fiscal management, lower inflation, and improved external balances, according to new macroeconomic data released this week. Despite these gains, the reports notes that growth momentum slowed, and persistent structural weaknesses continue to limit job creation and private-sector transformation.
The report maintains that real GDP growth eased to 4.0 percent in 2024 from 4.7 percent in 2023, reflecting a slowdown in industrial output that offset gains in agriculture and services.
Inflation however, though is said to have declined sharply to 8.3 percent, down from double digits in previous years due to prudent monetary policies, easing food prices, and a stable exchange rate.
The report provides narrative that government’s efforts to tighten public spending and boost domestic revenues also paid off.
By this, it states that the fiscal deficit narrowed significantly, from 7.1 percent to 2.0 percent of GDP, while the public debt-to-GDP ratio dipped modestly to 57.2 percent.
At the same time, it says fiscal consolidation was driven largely by stronger revenue mobilization and a sharp reduction in recurrent expenditure.
Exports Up, Imports Down — But Investment Still Weak
On the external front, the report furthers that Liberia’s current account deficit halved to 11.2 percent of GDP, as stronger exports of gold, rubber, and cocoa helped narrow the trade gap, adding that exports grew by 17 percent, while capital and fuel imports fell by 20 percent — signaling subdued industrial and investment activity.
Despite this improvement, it indicates that economy remains highly dependent on a few commodities, leaving it vulnerable to global price shocks.
“The fiscal deficit narrowed from 7.1 percent to 2.0 percent of GDP, driven by increased domestic revenues and spending cuts. The public debt declined modestly, and the current account deficit halved to 11.2 percent of GDP due to robust exports and falling imports. However, structural constraints such as low private investment, limited job creation, and growing reliance on non-concessional borrowing continue to pose risks,” the report asserts.
Sectorial Performance: Agriculture Rebounds, Industry Falters
The services sector, the World Bank Reports avers, continued to be the largest contributor to GDP in 2024, driven by gains in trade, communication, and financial services. Agriculture rebounded due to increased production of rubber and rice, though palm oil output declined because of persistent structural bottlenecks.
Inflation Eases, But Non-Food Prices Rising
It says inflation fell to 8.3 percent, supported by tighter monetary control and lower food and fuel prices; however, non-food inflation rose in the latter half of 2024, driven by higher costs in housing, healthcare, and education, a signal of underlying inefficiencies in the domestic economy.
Analysts say the shift from import-driven to domestically sourced inflation highlights deeper structural challenges, particularly in the services sector.
Poverty Declines Slightly, But Informality Dominates Jobs
At the same time, the report stresses that Liberia’s poverty rate declined modestly from 27.5 to 26.4 percent, reflecting stable growth and easing inflation; notwithstanding, the quality of jobs remains poor, with most new employment opportunities in the informal and low-paying sectors.
The report notes that 78 percent of Liberians remain in vulnerable employment without social protection or stable income. Women and youth are disproportionately affected due to low educational attainment and persistent skills mismatches.
“While labor force participation is high, wage employment remains stagnant, and vulnerable employment, marked by informality and lack of social security benefits, affects 78 percent of the workforce.”
Financial Sector Stable but NPLs Rising
The report also reveals that credit growth softened in 2024, and the financial sector stability indicators improved, though rising nonperforming loans (NPLs) pose a challenge.
The report among other things highlights that improved exports and the slowdown in imports narrowed the trade deficit, but concerns remain over investment and high export concentration.
Accordingly, speaking at the launch of the report, Madam Georgia Wallen, World Bank Liberia Country Manager, explains that the Bank’s ultimate goal of producing the report is to translate knowledge into action.
She says the report discusses four strategies for delivering ‘more and better jobs’ in Liberia: stimulating labor demand through agro-processing and light manufacturing; enabling firm growth via financial and regulatory reforms; modernizing the business environment and strengthening public–private coordination and expanding labor participation through skills, youth, and gender-focused interventions.
These measures, the World Banks Country Manager believes, can change the game and help position Liberia to foster productive, job-rich growth and improved resilience to future shocks.
Madam Wallen is upbeat that a multi-stakeholder approach will be key for achieving these objectives.
“Over the next five years, WBG partnership with Liberia will focus intensively on building foundations for more and better jobs, anchored in the new Country Partnership Framework (CPF) that we will launch next month. We hope that the LEU can help inform our efforts to tackle Liberia’s jobs challenge and unlock opportunities for future progress. It will take all of us, working together to build a brighter future for Liberia,” the World Bank country chief adds.
Also in remarks, Mr. Dehpue Y. Zuo, Deputy Minister for Economic Management at the Ministry of Finance and Development Planning (MFDP), reaffirms the country’s commitment to sustaining economic growth.
While the country’s growth numbers and revenue performance are strong, he acknowledges the Bank’s report that highlights key challenges.
He expresses the desire to work alongside the private sector through a new policy on public-private partnerships, stating that this approach is essential for job creation, economic stabilization, and youth opportunity.
He then reaffirms government’s commitment to sustain the growth trajectory by managing successes and challenges.
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