IMF Reviews Liberia's Economic Performance and Approves Resilience Facility
The International Monetary Fund (IMF) has conducted its third review under the Extended Credit Facility (ECF) arrangement for Liberia and approved a new arrangement under the Resilience and Sustainability Facility (RSF). The review highlights Liberia's robust economic growth and outlines reforms aimed at enhancing resilience to climate change and other external shocks.
Economic Performance
Economic activity in Liberia has remained robust, with real GDP growth estimated to have accelerated to 5.1 percent in 2025, up from 4.0 percent in 2024. Preliminary data suggest that strong mining output, alongside moderate growth in agriculture and services, were the main drivers of expansion, while manufacturing activity is estimated to have contracted slightly. Inflation eased substantially in the second half of 2025, stabilizing at 4.4 percent in the fourth quarter compared to 12.5 percent in the first quarter. This rapid deceleration reflects broad-based declines in food and non-food prices, supported by a relatively strong Liberian dollar and favorable global food prices.
Program Performance
Performance against quantitative program targets remained strong. All performance criteria for June 2025 were met comfortably. Three of the five end-June indicative targets were met, while two were missed by a small margin: the continuous target on the non-accumulation of new domestic debt arrears and the target on the share of public wage bill paid in Liberian Dollars. These slippages reflected temporary challenges in debt and liquidity management. The domestic arrears were nonetheless cleared by end-December 2025. The authorities reiterated their commitment to effective liquidity management, timely debt servicing, and gradually increasing the Liberian dollar share of the wage bill.
Resilience and Sustainability Facility
The authorities requested IMF support under the Resilience and Sustainability Facility (RSF). Liberia is among the most vulnerable and least prepared countries to manage extreme climate events and pandemic outbreaks. Recent initiatives—including the National Adaptation Plan, Nationally Determined Contributions, and National Disaster Risk Financing Strategy—provide a solid policy foundation for advancing reforms that support stronger and more resilient economic growth. The RSF arrangement is designed to help the authorities implement a reform agenda in the following three pillars:
- Disaster risk management and pandemic preparedness
- Climate finance and governance
- Water and food security
The RSF will also support the authorities’ efforts in building buffers against long-term balance of payments vulnerabilities.
Staff Appraisal
Implementation of the ECF-supported program remains broadly satisfactory. The authorities have demonstrated strong ownership and deserve credit for sustaining reform momentum amid persistent global challenges. All quantitative performance criteria and most indicative targets at end-June 2025 were met. Although progress on structural measures has been mixed, the authorities have ultimately implemented all applicable structural benchmarks except for two, which required additional time given the country’s relatively limited implementation capacity and the ambitious scope of the reform agenda. Looking ahead to the 2026 priorities, staff encouraged the authorities to maintain steady progress on the structural reform agenda, including the reforms under the RSF arrangement.
Economic growth remains robust, and the outlook is favorable. Mining production has increased, supported by newly operational mines and elevated commodity prices—particularly gold. Continued expansion in agriculture and the implementation of investment projects will further support economic activity.
This review underscores Liberia's commitment to economic reforms and resilience-building measures, positioning the country for sustainable growth and development.
