Liberia News: Economy Standing Strong

Growth Projected At 5.1%

TNR News-The Liberian economy, from all indications, is standing strong and on the right trajectory of growth as a mid-year update on the country’s economic outlook is projecting a growth rate of 5.1% for 2024.

Just few days after his preferment by President Joseph Nyuma Boakai as Acting Minister of Finance and Development Planning, Mr. Anthony G. Myers, has spotlighted strong performances in mining, agriculture, fishing, and services as key drivers for economic growth.

At Ministry of Information Minister Press Briefing Wednesday, Mr. Myers disclosed that economic growth is projected to reach 5.8% by 2025, emphasizing that a medium-term growth rate averaging 5.6% will be supported by increased activity in mining, expansion of the services sector, significant infrastructure investments, and improved electricity supply.

He stated that the government is committed to implementing structural reforms in crucial sectors such as energy, trade, transport, and financial services in order to sustain and enhance this growth, adding that the reforms intends to create a more favorable environment for economic activity and investment.

In the wake of hovering inflation climate, Minister Myers has calmed down nerves by projecting inflation to slow to 7.0% by the end of 2024, as a positive reflection of stabilization of prices in the market, noting also that inflation will further decline to 5.0% by 2027 as in indicator of a positive trend in economic stability.

On the issue of fiscal performance, Myers revealed that tax revenues remain on track, with the Liberia Revenue Authority collecting $342.6 million by the end of June 2024, while he puts cash on hand at $315.4 million, with interim receipts totaling $27.2 million.

Breaking down the income portfolio, he said taxes on income and profits amount to $137.2 million, while taxes on international trade total $108.8 million.

According to the Acting Finance Minister, the figures underscore the government’s effective revenue collection strategies, and at the same time disclosed that of the $315.4 million collected, $255.4 million has been disbursed.

He said: “This spending aligns with the government’s strategic priorities for economic development.”

He is optimistic about Liberia’s economic future, noting that the government is committed to ensuring sustainable growth through continuous reforms and strategic investments.

As part of government’s commitment to fiscal decentralization, Minister Myers said County Service Centers will retain 40% of state-generated revenues, indicating further that the initiative supports the broader goal of implementing the Local Government Act and enhancing administrative decentralization.

“To advance the President’s vision, a Local Government Finance Commission will be appointed to set annual spending caps for each county. This measure aims to empower local governance and ensure financial resources are effectively utilized,” the Minister asserted.

According to Myers, a consequential progress made with the National Development Plan, Public Sector Investment Plan, and District Development Plan, divulging that “Two Liberian think tanks have been appointed to lead these efforts, with consultations set to begin shortly.”

At the same time, he announced that the Ministry of Finance has finalized plans for an audit in collaboration with the General Audit Committee, saying that the audit will cover the period from January 2022 to January 2024.

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