Liberia economy growth points to jobs challenge

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Liberia economy growth jobs challenge

Highlights

Liberia's economy grew 5.1 percent in 2025, driven by 17 percent mining expansion and 4.6 percent growth in services, while agriculture slowed to 2.6 percent.
Liberia's fiscal deficit narrowed to 2.1 percent of GDP and public debt declined to 55.1 percent of GDP in 2025, but international reserves covered only 1.6 months of imports.
The World Bank highlights the need for stronger oversight of state-owned enterprises, improved revenue mobilization, and reforms to support private sector investment and job creation.

World Bank update outlines growth and reform agenda

As reported by the World Bank, the seventh edition of the Liberia Economic Update, launched in Monrovia, says the economy grew 5.1 percent in 2025, driven by a 17 percent expansion in mining and 4.6 percent growth in services. Agriculture, by contrast, slows to 2.6 percent, showing that the recovery remains uneven across sectors.

The report, titled "Beyond Growth: Addressing Structural Constraints to Job-Rich Growth in Liberia," reviews recent economic performance and examines barriers that limit poverty reduction and employment creation. Georgia Wallen, the World Bank Group's country manager for Liberia, says the country's recent gains are encouraging but the main challenge is converting growth into opportunities and improvements in living standards.

Liberia also records some fiscal improvement, with the overall deficit narrowing to 2.1 percent of GDP in 2025 from 2.5 percent in 2024, while public debt declines to 55.1 percent of GDP from 56.4 percent. Inflation remains contained, supported by tight monetary policy, a broadly stable exchange rate and moderate global food and fuel prices, although international reserves cover only about 1.6 months of imports at the end of 2025.

State-owned enterprises and job creation remain central

Another major focus of the update is the role of state-owned enterprises in service delivery and public finances. The report says stronger oversight, transparency, financial reporting and accountability are needed to reduce fiscal risks and improve the operational performance of those entities.

Bonnie Ann Sirois, World Bank Group senior public sector specialist and co-author of the report, says better monitoring and reporting can help protect public resources while strengthening the contribution of state-owned enterprises to national development. The update identifies policy priorities including preserving macroeconomic stability, improving domestic revenue mobilization, rebuilding external buffers, enabling private sector investment and diversification, and widening productive economic opportunities.

Gweh Gaye Tarwo, the World Bank Group's country economist and lead author, says Liberia needs to build on macroeconomic progress by addressing structural constraints that limit investment and job creation. The findings point to a broader message for the country and its investors, growth is improving, but sustaining it will depend on reforms that support private sector expansion and make economic gains more inclusive.

In our earlier article on Malaysia’s need to strengthen fiscal buffers after Budget 2027, we noted warnings that recurring global shocks and a prolonged period of high interest rates could strain public finances. We also highlighted proposals to broaden the tax base and refine targeted fuel subsidies, alongside the broader point that sustained growth supports fiscal consolidation only if governments preserve enough policy space to absorb future crises.

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