Liberia’s economy grew by 5.1 percent in 2025, supported by a strong rebound in mining and continued expansion in services. However, stronger and more inclusive job creation will be critical to translating economic growth into broader improvements in living standards, according to the 7th edition of the World Bank Group Liberia Economic Update (LEU) launched Monday in Monrovia.
The report, Beyond Growth: Addressing Structural Constraints to Job-Rich Growth in Liberia, examines Liberia’s recent economic performance and the structural constraints affecting poverty reduction and job creation. It also assesses the oversight and performance of state-owned enterprises (SOEs) and outlines reforms to reduce fiscal risks and support more inclusive growth.
“Liberia’s recent economic gains are encouraging. The key challenge now is translating growth into opportunities and improvements in people’s lives,” said Georgia Wallen, World Bank Group Country Manager for Liberia.
“Achieving Liberia’s national development goals means sustaining macroeconomic stability while addressing the structural barriers that prevent businesses from expanding, workers from accessing productive opportunities, and communities from fully participating in the country’s growth.”
Mining expanded by 17 percent in 2025, while services grew by 4.6 percent, supported by trade, electricity supply, and transport. Agricultural growth slowed to 2.6 percent. Liberia also made progress in strengthening its fiscal position, with the overall fiscal deficit narrowing to 2.1 percent of GDP from 2.5 percent in 2024. Public debt declined from 56.4 percent to 55.1 percent of GDP. Inflation remained contained, supported by tight monetary policy, a broadly stable exchange rate, and moderate global food and fuel prices. However, external buffers remain limited, with international reserves covering about 1.6 months of imports at the end of 2025, underscoring Liberia’s continued vulnerability to external shocks.
Part two of the report focuses on state-owned enterprises, which provide important services and have implications for public finances. It highlights the importance of strengthening SOEs’ oversight, transparency, financial reporting, and performance as part of Liberia’s broader reform agenda. The report calls for greater attention to the fiscal risks associated with SOEs and clearer accountability for their financial and operational performance.
“State-owned enterprises play an important role in delivering essential services, but strong oversight is critical to ensuring that they operate transparently and sustainably,” said Bonnie Ann Sirois, World Bank Group Senior Public Sector Specialist and co-author of the report. “Improved financial reporting, accountability, and monitoring of fiscal risks can help protect public resources and strengthen their contribution to Liberia’s development.”
The report highlights several policy priorities to help Liberia translate economic growth into broader development gains. These include:
• Preserving macroeconomic stability through prudent fiscal management, stronger domestic revenue mobilization, and rebuilding external buffers.
• Enabling private sector growth and job creation by addressing constraints that limit productive investment and economic diversification.
• Strengthening state-owned enterprise governance and oversight, including financial reporting, transparency, accountability, and monitoring of fiscal risks.
• Promoting more inclusive growth by focusing policy and investment on expanding productive economic opportunities and improving livelihoods.
“Liberia needs to build on its macroeconomic progress by addressing the structural constraints that limit productive investment and job creation,” said Gweh Gaye Tarwo, World Bank Group Country Economist and lead author of the report. “Stronger fiscal management, a more enabling environment for the private sector, and improved governance of state-owned enterprises can help put the economy on a more sustainable and job-rich growth path.”
