An International Monetary Fund (IMF) team, led by Mission Chief for Liberia, Mr. Daehaeng Kim, visited Monrovia from June 4 to June 17, 2025. The visit aimed to conduct the 2025 Article IV Consultation and the Second Review under the Extended Credit Facility (ECF) arrangement.
Mr. Kim stated that "the IMF staff held engaging and constructive discussions with the authorities on recent macroeconomic developments, the economic outlook, and medium-term policy priorities under the Article IV Consultation, as well as the performance and policies supported by the Extended Credit Facility arrangement."
He acknowledged that "the authorities have continued to make progress in maintaining macroeconomic stability, and their commitment to reform remains strong." The economic activity was moderated in 2024 due to slow mining activity and fiscal adjustment. However, a reduction in unproductive expenditures and recovery of tax revenues led to an improved fiscal outcome. The primary fiscal balance shifted from a deficit of 4.2 percent of GDP in 2023 to a surplus of 1.3 percent in 2024. Inflation was at 13.1 percent in February but decreased to 11.7 percent by May.
Mr. Kim noted that "the medium-term outlook has been marked down due to the sudden stop of aid flows and less favorable global environment." Despite this, growth is expected with rebounds in mining activity, agriculture recovery, and sustained growth in manufacturing and services sectors.
The focus during policy dialogue included structural reforms for development needs, climate risk mitigation, private sector growth promotion, and economic diversification for inclusive growth.
IMF staff reached understandings on most key macroeconomic policies for the second review of the ECF arrangement but will continue discussions virtually on some outstanding issues with hopes of finalizing a staff-level agreement soon.
Mr. Kim expressed gratitude towards Liberian authorities stating: “IMF staff express its gratitude to the authorities and all other counterparts for their warm hospitality and constructive engagement.”
During their visit, "the team met with the leadership of the national legislature; Minister of Finance and Development Planning Mr. Augustine K. Ngafuan; Executive Governor of the Central Bank of Liberia Mr. Henry F. Saamoi; senior government officials; development partners; representatives of the private sector; and civil society."