Liberia’s economy is expected to maintain strong growth this year despite rising global fuel prices, with the International Monetary Fund (IMF) praising the country’s progress in preserving macroeconomic stability under its reform programme.
An IMF staff mission concluded a two-week visit to Monrovia on Thursday after conducting the fourth review of Liberia’s Extended Credit Facility (ECF) arrangement and the first review under the Resilience and Sustainability Facility (RSF).
The mission, led by IMF Mission Chief for Liberia Daehaeng Kim, said programme performance against agreed quantitative targets remained strong, reflecting continued policy discipline by the authorities.
The Fund projected Liberia’s economy to expand by 5.5 percent in 2026, driven largely by robust iron ore production as mining activity continues to grow. Manufacturing and construction are also expected to contribute to economic expansion.
Inflation has remained relatively contained despite higher international fuel prices. Annual inflation rose to 5.3 percent in May from 4.0 percent at the end of 2025, a modest increase that the IMF attributed to the limited weight of fuel in Liberia’s consumer price index and the country’s stable exchange rate.
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“The authorities have made solid progress in macroeconomic stability,” Kim said in a statement issued at the end of the mission.
Fiscal performance is expected to remain aligned with programme objectives, supported by continued improvements in domestic revenue mobilisation.
However, the IMF warned that Liberia’s external balance would deteriorate this year as imports increase sharply.
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The current account deficit is forecast to widen to around 18 percent of gross domestic product in 2026 from about 7 percent in 2025. The Fund attributed the expansion primarily to higher fuel import costs and increased purchases of capital goods linked to mining investments and construction projects.
Despite the widening deficit, the IMF said Liberia’s medium-term economic outlook remained favourable, underpinned by sustained investment and growth in key sectors.
The Fund also welcomed the government’s commitment to maintaining fiscal and financial stability while expanding investment in infrastructure and social programmes.
According to the IMF, the authorities intend to accelerate priority capital spending and increase targeted expenditure on health, education and support for vulnerable groups.
These efforts are expected to be backed by stronger domestic revenues as well as a one-off bonus payment of US$200 million, equivalent to approximately 3.5 percent of GDP.
The IMF said discussions with the Liberian authorities had been constructive and that both sides had reached an understanding on the policy framework underpinning the fourth review of the ECF arrangement.
Further discussions will continue in the coming days before the review process is finalised.
The IMF noted that the staff visit will not result in an immediate Executive Board discussion, adding that the conclusions reflected the preliminary views of the mission team rather than those of the Fund’s Executive Board.
During the mission, the IMF delegation met President Joseph N. Boakai, Finance and Development Planning Minister Augustine K. Ngafuan, Central Bank Executive Governor Henry F. Saamoi, senior government officials and development partners.
The IMF expressed appreciation to the Liberian authorities and their counterparts for what it described as their hospitality and constructive engagement throughout the mission.
