Liberia’s economic growth will stall this year as high inflation overwhelms gains made in revenue collection in the West African nation, the International Monetary Fund staff said in a report on its website.
The economy will expand 0.2 percent in 2019 under current policies, down from an earlier estimate of 4.7 percent, the IMF said Friday. The agency said 2018 growth was 1.2 percent, lower than 2.5 percent in 2017. Inflation jumped to 28 percent in December, the Washington-based IMF said.
“Liberia’s economic situation is challenging, and strong policy actions will be required to maintain as favorable outlook as anticipated at this time last year,” IMF team leader Mika Saito said in the statement. “Stability has proved elusive despite improved revenue collection in the first half” of the 2019 fiscal year.
The IMF staff in Liberia recommended fiscal policies and improving the efficiency of government spending.
“Policies should aim at improve the monitoring, accountability, and transparency of spending,” Saito said. “Intensifying actions to improve governance and fight corruption, including through rigorous adherence to existing procurement rules, would also be effective.”