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Tuesday, November 5, 2024

Liberia: Finance Minister Projects Promising Economic Outlook Fueled by Mining Gains

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By Festus Poquie

Finance and Development Planning Minister Augustine Ngafuan has projected a robust 6% growth for the country’s economy by 2025, ongoing economic challenges.

This optimistic outlook hinges largely on the mining sector’s potential to generate substantial revenue, which is expected to play a crucial role in bolstering the national budget, he told state broadcast radio ELBC.

Recent economic statistics reveal that Liberia’s GDP growth for 2024 is projected at approximately 4.5%, a notable increase from previous years but still indicative of a country wrestling with recovery after years of civil unrest and the global COVID-19 pandemic.

With inflation rates fluctuating around 6 to  7%, economic stability remains a priority, especially as the government seeks to address rising spending demands.

Minister Ngafuan emphasized the importance of diversifying the economy beyond traditional sectors.

“We need to grow the economy, and the growth we achieve must reflect in revenue increases,” he stated, highlighting ongoing efforts to close revenue loopholes that have historically hampered fiscal growth.

Key initiatives aimed at expanding the economy involve increasing electricity access and improving the country’s road networks to enhance trade and business profitability.

“Access to affordable and reliable electricity is paramount for our businesses to thrive, and we are committed to investing in energy solutions that will reduce costs significantly,” Ngafuan added.

The government is actively collaborating with tax authorities to design comprehensive strategies to improve disposable incomes for citizens and stimulate consumer spending, he said.

This initiative is intended to provide a solid foundation for economic growth, while also addressing current cost-of-living challenges faced by many Liberians.

As Liberia positions itself for economic recovery, the government’s focus on infrastructure development, particularly in the energy sector, aims to attract foreign investment and support local business operations.

With mining projects already underway, the prospects for achieving the projected 6% growth appear increasingly feasible, contingent on effective policy implementation and sustained investment in critical sectors.

Liberia’s economic future looks promising according to Minister Ngafuan, but realizing this vision will necessitate concerted efforts in closing revenue gaps, enhancing infrastructure, and fostering a business-friendly environment.

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