Liberia's Economy Grows 5.1%, but World Bank Warns Jobs Must Reach More Liberians

The findings were published in the seventh edition of the World Bank Group's Liberia Economic Update, titled Beyond Growth: Addressing Structural Constraints to Job-Rich Growth in Liberia, launched in Monrovia.

Liberia's economy recorded 5.1 per cent growth in 2025, supported by a strong recovery in mining activities and continued expansion in the services sector. The improvement signals encouraging economic progress, but creating enough stable and well-paying jobs remains a major challenge for the country. A new World Bank report warns that stronger economic performance must lead to better employment opportunities and higher living standards if more Liberians are to benefit from the country's growth.

The findings were published in the seventh edition of the World Bank Group's Liberia Economic Update, titled Beyond Growth: Addressing Structural Constraints to Job-Rich Growth in Liberia, launched in Monrovia. The report examines the country's economic performance, employment challenges and structural barriers that continue to limit poverty reduction and business development. It also reviews the financial performance and management of state-owned enterprises, identifying reforms that could protect public resources and support more inclusive economic growth.

World Bank Group Country Manager for Liberia Georgia Wallen welcomed the country's recent economic gains, stressing the importance of turning stronger growth into meaningful improvements in people's lives. She highlighted the need to maintain economic stability and address the barriers that prevent businesses from expanding and workers from finding productive employment. The report suggests that Liberia's future progress will depend on creating an economy where more communities can participate in growth and benefit from expanding economic opportunities.

Mining and Services Drive Growth as Agriculture Slows

Mining emerged as Liberia's strongest-performing sector in 2025, expanding by 17 per cent and making an important contribution to the country's overall economic recovery. The services sector grew by 4.6 per cent, supported by improvements in trade, electricity supply and transportation activities that helped sustain economic momentum. Agricultural growth slowed to 2.6 per cent, highlighting differences in performance across major industries and the need for more balanced economic development.

The World Bank identifies limited productive employment and structural constraints on business expansion as major obstacles to turning economic growth into widespread improvements in living standards. Expanding investment opportunities and encouraging greater economic diversification could help Liberia reduce its dependence on a few major industries and support more sustainable employment. Stronger private businesses and better access to productive economic activities would give more Liberians opportunities to earn reliable incomes and improve their livelihoods.

Public Finances Improve but Economic Risks Remain

Liberia made progress in managing its public finances during 2025, with the overall fiscal deficit narrowing to 2.1 per cent of GDP from 2.5 per cent in 2024. Public debt also declined from 56.4 per cent to 55.1 per cent of GDP, reflecting an improvement in the country's fiscal position. Inflation remained contained, supported by tight monetary policy, a broadly stable exchange rate and moderate international food and fuel prices.

Despite these improvements, Liberia remains vulnerable to external economic shocks because its financial reserves provide only limited protection against unexpected pressures. International reserves covered approximately 1.6 months of imports at the end of 2025, leaving the country exposed to disruptions in global markets and other external developments. The World Bank recommends maintaining careful public spending, strengthening domestic revenue collection and rebuilding international reserves to improve economic stability and protect development gains.

Stronger State Enterprises and More Jobs Are Key to Inclusive Growth

State-owned enterprises play an important role in providing essential services in Liberia, but weaknesses in their financial management and oversight can create risks for government finances. The report calls for stronger financial reporting, greater transparency and clearer accountability to ensure that these enterprises operate efficiently and manage public resources responsibly. World Bank Group Senior Public Sector Specialist and report co-author Bonnie Ann Sirois emphasised that better financial monitoring and oversight could reduce fiscal risks and strengthen the contribution of state-owned enterprises to national development.

The report identifies private sector development as another important priority, particularly through reforms that encourage productive investment, support business expansion and create more employment opportunities. Addressing structural barriers and encouraging economic diversification could help Liberia develop industries that generate better-paying jobs and improve household incomes. Greater attention to communities with limited economic opportunities would also help ensure that the benefits of growth extend beyond sectors already experiencing strong performance.

Liberia's improving economic indicators allow the government to strengthen its development agenda and build a more productive, inclusive economy. Sustaining these gains will require disciplined financial management, stronger public institutions and policies that encourage businesses to invest, expand and employ more people. The World Bank's findings underline a central challenge for Liberia: economic growth must create meaningful jobs and improve everyday living conditions if the country's progress is to benefit a wider share of its population.