Left Menu
Development News Edition

World Bank’s report states economy of Liberia is likely to increase by 4.5pct in 2020


World Bank’s report states economy of Liberia is likely to increase by 4.5pct in 2020
The World Bank said, inflation was an estimated 11.7 percent in 2018, slightly lower than in 2017, due partly to high dollarization. Image Credit: StoryBlocks

The World Bank has projected that the economic outlook of Liberia is 'positive' with real GDP growth projected to increase to 4.7 percent in 2019 and 4.8 percent in 2020, underpinned by modest growth in agriculture, fisheries and services.

The World Bank revealed in an outlook of the Liberian economy recently that inflation is expected to decrease further to 10.5 percent in 2019 and 9.5 percent in 2020 because of a stable exchange rate, prudent monetary and fiscal policies, and a modest increase in domestic food production. The current account deficit is expected to remain slightly above 22 percent in both 2019 and 2020, the report stated.

A moderate increase in revenues, combined with a decrease in spending, reduced the fiscal deficit to 3.9 percent in 2018 from 7.9 percent of GDP in 2017. Liberia remains at a moderate risk of debt distress. Total public debt was 41.3 percent of GDP in 2017, about 69.6 percent of which (or 29 percent of GDP) was external," the World Bank reported, APA News noted.

The World Bank pointed out that real GDP growth rebounded to an estimated 3.2 percent in 2018, from 2.5 percent in 2017, driven largely by mining and manufacturing, while agriculture, forestry, and fishing dominate the economy, contributing 70.3 percent of GDP in 2017.

The World Bank said, inflation was an estimated 11.7 percent in 2018, slightly lower than in 2017, due partly to high dollarization (about 70 percent of broad money). The current account deficit improved marginally to 22.4 percent in 2018 from 22.7 percent in 2017 as exports increased due to gold production and a modest recovery of commodity prices. Gross foreign reserves increased slightly from 3.0 months of imports in 2017 to 3.6 months at the end of June 2018.

"The positive outlook could be overshadowed by the risk of debt distress, which could go from moderate to high if borrowing to meet large public investment needs increases while the output of key export sectors declines," the bank said. It observed that a decline in aid inflows after the 2014–16 Ebola crisis and the 2018 completion of the UN peacekeeping mission in Liberia may affect the economic outlook.

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

FACTBOX-Latest on coronavirus spreading in China and beyond

South Korea declared a red alert on Sunday after a surge in coronavirus infections and two more deaths, while China state media warned the outbreak there had yet to reach a turning point despite some signs of easing. China has reported a to...

Italy coronavirus cases now surpass 100, up from 79: official

The number of coronavirus cases in Italy has risen to over 100, the president of the northern Lombardy region said on Sunday.Attilio Fontana told SkyTG24 television there were more than 100 cases in the country overall and 89 cases in Lomba...

UPDATE 12-Sanders wins decisively in Nevada, Biden headed for second-place finish

Bernie Sanders strengthened his front-runner position for the Democratic presidential nomination with a decisive victory in the Nevada caucuses on Saturday, while Joe Biden was on track for a second-place finish that would give his struggli...

Sharif was a 'selected' prime minister: Bilawal

Pakistan Peoples Party PPP chairman Bilawal Bhutto-Zardari has said that like Imran Khan, PML-N supreme leader Nawaz Sharif was also selected for the post of premier, in a U-turn from his earlier comments that opposition parties are united....

Give Feedback