-As 5.1% Growth Fails to Ease Poverty
By Vaye A. Lepolu
MONROVIA – The World Bank has outlined four major priorities for Liberia’s economic transformation, warning that the country’s 5.1 percent growth in 2025 has failed to translate into meaningful improvements in the lives of ordinary citizens.
The priorities—contained in the World Bank Group’s seventh Liberia Economic Update, titled “Beyond Growth: Addressing Structural Constraints to Job-Rich Growth in Liberia”—were unveiled Monday in Monrovia at the report’s launch. The assessment highlights a critical challenge: economic expansion without sufficient job creation and poverty reduction.
“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.
The Four Priorities
The report calls for responsible fiscal management, increased domestic revenue mobilization, and rebuilding external reserves. While Liberia’s overall fiscal deficit declined to 2.1 percent of GDP from 2.5 percent in 2024, and public debt dropped from 56.4 percent to 55.1 percent of GDP, the country’s international reserves covered only 1.6 months of imports at the end of 2025—leaving the economy vulnerable to external shocks. Inflation remained contained, supported by tight monetary policy, a relatively stable exchange rate, and moderate global food and fuel prices.
Removing Barriers to Private Investment and Economic Diversification
Liberia’s 2025 growth was heavily dependent on mining, which surged 17 percent, while services expanded 4.6 percent and agriculture slowed to 2.6 percent. The World Bank warned that continued dependence on mining, coupled with sluggish agricultural growth, could limit the country’s ability to generate widespread employment and reduce poverty. The report urges removal of barriers preventing businesses from expanding and workers from accessing productive opportunities.
Strengthening Governance of State-Owned Enterprises
The report raised concerns about management of state-owned enterprises, stressing the need for stronger accountability and transparency in the use of public resources. “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, a Senior Public Sector Specialist at the World Bank Group and co-author of the report. Wallen and Sirois called for improved financial reporting, accountability mechanisms, and monitoring of fiscal risks.
Expanding Productive Opportunities and Improving Livelihoods
The fourth priority directs policies and investments toward creating jobs and raising living standards. Gweh Gaye Tarwo, the World Bank Group’s Country Economist and lead author of the report, said Liberia must address structural constraints that continue to undermine investment and job creation. “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,” Tarwo said.
The World Bank’s assessment presents a sobering outlook for Liberia, where headline economic growth remains challenged by persistent poverty, limited employment opportunities, and weak economic diversification. The report underscores that unless economic expansion translates into jobs, higher incomes, and improved living standards, Liberia’s 5.1 percent growth rate may remain a statistical achievement with limited impact on the daily struggles of its citizens.
Wallen noted that achieving the country’s development goals would require maintaining macroeconomic stability while addressing barriers that prevent businesses from expanding, workers from accessing productive opportunities, and communities from benefiting from economic growth.
