Liberia

Liberia’s political landscape remains dynamic and, at times, contentious. Recent political debates have focused on issues such as corruption, electoral reform, decentralization, and the rule of law. The main opposition political party, Coalition for Democratic Change (CDC), led by former President George Weah, is strengthening its party’s structure and infrastructure, looking ahead to the 2029 Presidential and Legislative elections. Other political parties are putting structures in place in preparation for the next polls.

The Liberian Government assumed office in January 2024 and has presided over a period of relative stability. Armed robberies are declining, including violent civil unrest, though land disputes are still visible and sometimes lead to court-ordered evictions followed by protests. Although Liberia no longer grapples with active conflict or high levels of interpersonal or gang violence, the country is still on a path out of fragility toward greater resilience.

Simmering border disputes, driven by historical and resource tensions, flared up between Guinea and Liberia in Lofa County. These tensions were eased off because of President Joseph Nyuma Boakai utilizing diplomatic approach within the framework of the Mano River Union (MRU) and Economic Community of West African States (ECOWAS).

The Government has outlined its vision for Liberia’s development through the ARREST agenda – an acronym representing Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism. The Government wants to leverage these key sectors to reverse economic stagnation, emphasizing the need for comprehensive and interconnected development strategies. The Boakai administration continues to push its governance reform and development agenda forward. The plan focuses on strengthening the economy, enhancing public services, and reforming government institutions.

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Liberia's economy expanded by 5.1% in 2025, driven by a strong rebound in mining and continued gains in the services and agriculture. Mining sector growth increased to 17.0% from 2.1% in 2024, providing a significant boost to industrial output. The services sector grew by 4.4%, supported by trade, electricity supply, and transport activity, while agricultural growth eased to 2.6% as price effects faded and rubber output slowed.

Inflationary pressures remained contained, with headline inflation averaging 8.5% in 2025. Food inflation declined sharply from 9.7% year-on-year (y/y) in December 2024 to -1.7% by December 2025, while nonfood inflation moderated from 11.1% (y/y) to 6.6% over the same period.

The Central Bank of Liberia maintained its restrictive policy stance, cautiously easing its policy rate from 17% in January 2025 to 16.25% in December, a measured intervention that reflected the inflation dynamics.

Liberia’s fiscal performance improved considerably in 2025.The overall fiscal deficit narrowed to 1.1% of GDP in 2025 from 2.0% the previous year, driven by growth in domestic revenue and compressed spending. The primary balance swung to a surplus of 0.2% of GDP, compared to a deficit of 1.0% in 2024. Public debt declined from 57.2% of GDP in 2024 to 54.6% in 2025.

On the external side, the current account deficit declined from 8.1% of GDP in 2024 to 6.5% in 2025. Export performance was robust, led by gold and iron ore, however, the gains in exports were offset by rising imports and sizable outflows from services and income. Remittances provided some cushion, helping to contain the overall deficit. Liberia’s external buffers remain limited, with foreign reserves standing at $576 million, an equivalent of approximately 2.0 months of import cover at end-2025.

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The Rural Economic Transformation Project continues to support increased productivity and market access for smallholder farmers and agri-enterprises across selected value chains in Liberia. The project has reached 66,097 direct beneficiaries (target: 96,000), with 50% being women.

The Government of Liberia has officially launched the Mission 300 (M300) Compact Delivery and Monitoring Unit (CDMU. Between January and December 2025, approximately 81,776 new household connections—reaching nearly 376,000 people—gained access to electricity thanks to support from World Bank-financed projects and other development partners.

The repair work on Mt. Coffee Hydropower Plant Unit 1 (22MW) is nearing completion, with the plant’s full 88MW capacity set to be restored by June 2026. The tender for an additional 42MW hydropower capacity has also been launched.

The Liberia Women Empowerment Program (LWEP) aims to improve social and livelihood services for women and girls, promote positive social norms, and strengthen government capacity to advance women’s and girls’ empowerment. Working in 498 communities across six counties in Liberia, the project seeks to reach over 200,000 women and men through community mobilization to address gender-based violence, and to support 36,000 women with climate-resilient livelihoods and business support to increase income. To date, the project has profiled over 3,800 enterprises, supported more than 875, and trained over 1,000 beneficiaries in business and financial skills.

The Recovery of Economic Activity for Liberian Informal Sector Employment (REALISE) Project benefitted approximately 53,000 households or 265,000 individuals across 14 of Liberia’s 15 counties.

There are currently two IDA-financed operations in the health sector. The projects focus on reproductive, maternal, newborn, child, and adolescent health and nutrition (RMNCAH-N) and health security, respectively. The new Health Security Program aims to enhance health sector performance – including through pandemic preparedness as well as disease surveillance and response.

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The World Bank Group Country Partnership Framework (CPF) for Liberia (FY25-FY30), is a platform for accelerating delivery and results while sharpening the focus of World Bank’s interventions in the last five years to the Liberia Rising 2030 target date.

The World Bank active portfolio in Liberia is worth $ 936.80 million and comprises 18 projects financed from multiple sources including national (15 projects) and regional (3 projects) IDA and sector specific/thematic trust funds. Cumulatively, about 46.03% of the portfolio has been disbursed towards key infrastructure sectors (including roads, water, and energy), health systems strengthening & disease surveillance, agriculture, fisheries, social safety net systems, governance reforms, women empowerment and improvements in investment, finance, and trade. FY25 disbursements reached 23%; FY26 disbursements are 9.68% annualized at 13.2% as of March 26, 2026. Quarterly “disbursement deep dives” at the Country Office level are helpful for monitoring and promoting enhanced momentum. Liberia currently has two problem projects; proactivity action plans are underway, with close monitoring to ensure timely achievement of results and proper exit strategies. Three projects are scheduled to close in FY26.

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IFC continues to expand its investment portfolio and pipeline in Liberia, focusing on priority sectors including energy, agribusiness, manufacturing, and access to finance. IFC supports the Liberian government and private sector in developing sustainable energy solutions and deploying technology and financing to meet the country’s energy needs. IFC’s advisory efforts also support enhancements to Liberia’s collateral registry system to promote financial inclusion and expand access to credit for businesses, particularly SMEs.

From 2019 to mid-2025, IFC implemented the Liberia Private Sector Development Program Phase II (LPSD II), funded by the Swedish International Development Cooperation Agency (SIDA). The program strengthened the business environment through support across agriculture value chains, expanded access to finance for small and medium enterprises, advanced digital financial services, and supported trade and investment climate reforms.

Looking ahead, IFC’s advisory engagements for FY26–FY30 will prioritize policy, institutional, and regulatory reforms to improve the business environment for private investment. Key focus areas include improving transparency and compliance in tree-crop supply chains and supporting reforms that expand access to reliable and sustainable energy. Under the World Bank Group Country Partnership Framework for Liberia, which emphasizes job creation, IFC will support private enterprises to expand and create employment. Through the Local Champions initiative, IFC provides targeted advisory support to selected companies to strengthen governance and operational capacity and prepare prospective investees for investment.

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