President Joseph Nyuma Boakai said his government under one year has made good progress in the Country’s economy especially by taking steps necessary to restore and stabilize it.
Speaking at his second SONA President Boakai said in 2024, the Country’s economy demonstrated resilience and steady growth, with a revised real GDP growth rate of 5.1%.
He named Key sectors driving such growth to include mining, agriculture, fisheries, and services.
According to him Strategic investments in infrastructure and energy development, supported by international partners such as the World Bank, the African Development Bank, the European Union, and USAID, further bolster such expansion.
‘We have managed inflation prudently, reducing it to 7.7% by the end of 2024, down from 10.1% in 2023, thanks to sound fiscal and monetary policies. We expect inflation to decrease further to 6.0% in 2025″, he noted.
Additionally, he told the gathering that the country’s international reserves have improved to US$458.9 million, and the Liberian dollar has appreciated by 4.7% against the US dollar.
At the same time, he stressed that the Central Bank has reduced the monetary policy rate from 20% to 17%, boosting confidence in the financial system and as a result, private sector credit has increased by 9.1%.
Efforts he pointed out are underway to strengthen financial governance focusing on reducing operational costs and addressing audit recommendations.
“Our participation in the IMF’s Extended Credit Facility (ECF) program will help rebuild reserves, strengthen fiscal policy, and enhance domestic revenue through improved tax collection and streamlined exemptions, We have also made progress in modernizing financial systems, improving access to finance for micro, small, and medium enterprises (SMEs), and increasing financial inclusion, which now covers 52% of the adult population”, he noted.
The Liberian leader indicated that the Implementation of the National Electronic Payment Switch (NEPS) and the transition to a cashless economy further demonstrate his government’s commitment to a stable, inclusive, and resilient economy.
Moreover, President Boakai stated that the insurance sector is also being strengthened, with reforms underway to establish an independent Insurance Commission as well as the establishment of Special Economic Zones will further diversify the economy, promote job creation, and foster inclusive development.
Speaking further he informed that gathering that over the past year, his administration has focused on transforming Liberia’s investment climate as such it is implementing policy changes to attract investment, including simplifying regulations, reducing red tape, and strengthening legal frameworks while ensuring social protection and local empowerment.
“We have engaged both domestic and international investors, showcasing Liberia as a land of untapped opportunities. While some key agreements are still pending, I am pleased to report that we are actively negotiating with major multinational companies in energy, mining, agriculture, infrastructure, and technology and once finalized, these negotiations are expected to bring over $3 billion in investments to our economy”, he added.
President Boakai intimated going forward that his government anticipates a promising medium-term outlook, with expected growth rates of 5.8% in 2025.
“We successfully passed the 2025 national budget in the amount of US$880.7 million before the start of the fiscal year—the first time this has happened in the post-war period. Passage of the budget before the start of the fiscal year will also make the execution of the national budget more predictable and efficient” he said.
Reflecting on the past, he stated that for many years governments neglected to remit County Development and Social Development Funds to the counties, depriving citizens of essential resources for local governance and development.
However, his leadership has begun reversing said trend by ensuring that these funds allocations for 2024 were duly disbursed to the counties.
He used the ocassion to assure the Counties that such will continue to ensure that counties receive these vital resources to improve the well-being of their citizens.
“Also, for the first time in years, the government remitted to the Road Fund all road fund-related revenues deposited in the Consolidated Fund, thus enabling the implementation of several road rehabilitation and maintenance works during the year”, he further disclosed.
“The Government’s ARREST Agenda for Inclusive Development (AAID), together with the County Development Agendas, will help propel these efforts forward”, he maintained.
President Boakai said despite global trends affecting commodity supply and prices, he has seen consistent declines in the costs of essential commodities, including rice and petroleum products stating that the price of 25kg IR64 parboiled rice was reduced within the first two months of our leadership.
“In addition, we successfully implemented measures to reduce pump prices, lowering the price of Premium Motor Spirit (PMS) by 12.53%, from $4.47 in January to $3.91 in December 2024 and in FY 2024, in the face of global challenges, Liberia made remarkable progress in domestic revenue mobilization and we collected just over $734 million in total revenue out of which, domestic revenue collection stood at an impressive $695.3 million, a 12% growth over the previous year. This achievement marks the highest domestic revenue collection in our nation’s history”, he boasted.
On the expenditure side, he told Liberians during his address that his government spent a total of US$661.4 million to execute the government’s functions and projects.
“To strengthen progress, we have implemented needed tax reforms, introducing the Value-Added Tax (VAT) in April 2024 to replace the outdated Goods and Services Tax (GST) and We are also investing in digital tax administration and building a state-of-the-art customs inspection facility at the Freeport of Monrovia to increase efficiency and expand our tax base, These interventions and reforms align with regional standards, improve tax compliance, and are expected to create a more stable revenue stream for the future”, he noted.
According to President Boakai Liberia is on a path toward greater self-reliance, ensuring the sustainability of its core programs for years to come.
“The Roberts International Airport, a vital gateway to Liberia and a potential driver of economic development has faced operational challenges. However, under this administration, we have charted a new course, making significant strides to unlock its promise as a regional hub” he said.
He stated that to enhance safety and operations at the airport, his government have invested in additional fire trucks, backup generators, and navigational aids while there are ongoing engagements with developers with focused on expanding the airport and improving its infrastructure and management.
These initiatives he pointed out will instill confidence among global airline operators and travelers, reflecting the government’s commitment to positioning Liberia as an attractive destination for global business and travel.
“Recently, we welcomed Ethiopian Airlines, which connects Liberia to over 150 global destinations and reduces air travel costs to key markets, including the USA, Europe, and Dubai and we are also in advanced discussions with carriers like Qatar Airways to establish an air service agreement”, he added.
At the same time, he told the gathering that his Government has worked tirelessly to rebuild trust with international financial institutions and the donor community.
As part of said efforts In 2024, his government secured a US $210 million financing package from the IMF’s Extended Credit Facility (ECF) to address macroeconomic imbalances and improve debt sustainability from 2024 to 2027.
“Our inclusion in the ECF has unlocked support from both multilateral and bilateral partners. The World Bank provided $60 million in support, US$40 million of which was budget support and the balance of US$20 million went to a Special Disaster Fund for Liberia to be administered by Liberia, The World Bank has also pledged $40 million in budget support for this year and 2026. We secured a $60 million grant from the European Union for 2025-2027, while the African Development Bank provided $40 million for road projects”, he re-emphasized.
During the period under review, The Chief Executive said Liberia also received $398.2 million in off-budget Official Development Assistance for critical sectors such as health, agriculture, and infrastructure.
“I am pleased to inform you that our bilateral relations have secured a commitment from the Government of the United States for Millennium Challenge Corporation (MCC) Compact eligibility. This is a significant achievement as it potentially exposes Liberia to substantial financial support in its development when completed in a couple of years.
This milestone reflects confidence in the steps we are taking as a nation, particularly in promoting transparency, making sound economic decisions, and strengthening governance”, he noted.
Making reference to the past, President Boakai stated that his administration inherited an economy in steep decline, with Liberians facing unprecedented hardships including rising unemployment, inflation, and growing inequality.
“Before our administration, growth had slowed to just 4.6 percent, while inflation surged to double digits at 10.1 percent, driven largely by rising food and fuel prices.
The current account deficit (at the time), had worsened to 26.4 percent of GDP, international reserves were dangerously low at just 2.1 months of import cover, and our debt burden had ballooned to $2.5 billion, or 54.6 percent of GDP.
Civil servants were facing extreme hardship due to pay “harmonization” and delayed salary payments, leaving them vulnerable to payday lenders and informal financial schemes like Susu clubs”, he added.
However, his government he told the gathering simply did not just recognize these challenges and their impact on the citizens; but rather took decisive action to increase salary of health workers, the police, and teachers.
Meanwhile, with the improvements thus far in the economy of the Country as outlined by President Boakai in his second SONA, which many termed as more theortical than practical, the ongoing reality they indicated shows a completee different picture as hardship and untold suffering of the people visibly seen by high cost of living, high unemployment rate, low and delayed in salaries of teachers and health workers as well security personal , the increase of youth in drug and alcohol addiction and or abusw and the increase in prices of basic commodities as well as the USD rate are now the order of the day.
