Economy of Liberia

Economy of Liberia
CurrencyLiberian dollar (LRD)
United States dollar (USD)
Trade organizations
AU, AfCFTA (signed), African Development Bank, ECOWAS, MRU, WAMZ, WTO, Group of 77
Country group
Statistics
PopulationIncrease 5,073,296 (2020 est.)[3]
GDP
  • Decrease $3.222 billion (nominal, 2019 est.)[4]
  • Increase $6.471 billion (PPP, 2019 est.)[4]
GDP rank
GDP growth
  • 2.5% (2017) 1.2% (2018)
  • −1.4% (2019e) 1.4% (2020f)[5]
GDP per capita
  • Decrease $704 (nominal, 2019 est.)[4]
  • Decrease $1,414 (PPP, 2019 est.)[4]
GDP per capita rank
GDP by sector
20.5% (2020 est.)[4]
Population below poverty line
  • 54.1% (2014 est.)[3]
  • 40.9% on less than $1.90/day (2016)[6]
35.3 medium (2016)[7]
Labor force
  • Increase 1,639,258 (2019)[10]
  • Increase 74.6% employment rate (2016)[11]
Labor force by occupation
  • agriculture: 70%
  • industry: 8%
  • services: 22%
  • (2000 est.)[3]
Unemployment2.8% (2014 est.)[12]
Main industries
mining (iron ore and gold), rubber processing, palm oil processing, diamonds
External
ExportsIncrease $260.6 million (2017 est.)[3]
Export goods
rubber, timber, iron, diamonds, cocoa, coffee[3]
Main export partners
ImportsDecrease $1.166 billion (2017 est.)[3]
Import goods
fuels, chemicals, machinery, transportation equipment, manufactured goods; foodstuffs[3]
Main import partners
Decrease −$627 million (2017 est.)[3]
Negative increase $1.036 billion (31 December 2017 est.)[3]
Public finances
Negative increase 34.4% of GDP (2017 est.)[3]
−4.3% (of GDP) (2017 est.)[3]
Revenues553.6 million (2017 est.)[3]
Expenses693.8 million (2017 est.)[3]
Economic aidrecipient: International multi-billion dollar debt relief and development aid
Decrease $459.8 million (31 December 2017 est.)[3]
All values, unless otherwise stated, are in US dollars.

The economy of Liberia is extremely underdeveloped, with only $3.222 billion by gross domestic product as of 2019, largely due to the First (1989–1996) and Second Liberian Civil War (1999–2003). Liberia itself is one of the poorest and least developed countries in the world, according to the United Nations.

Until 1979, Liberia's economy was among the more developed and fastest-growing in Sub-Saharan Africa, but after the 1980 coup d'état, it declined, and the civil war destroyed much of Liberia's economy and infrastructure, especially the infrastructure in and around the nation's capital, Monrovia. The war also caused a brain drain and the loss of capital, as the civil war involved overthrowing the Americo-Liberian minority that ruled the country. Some have returned since 1997, but many have not.

Liberia is richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, but poor in human capital, infrastructure, and stability. Liberia has a fairly typical profile for Sub-Saharan African economies. The majority of the population is reliant on subsistence agriculture, while exports are dominated by raw commodities such as rubber and iron ore. Local manufacturing, such as it exists, is mainly foreign-owned.

The democratically elected government, installed in August 1997, inherited massive international debts and currently relies on revenues from its maritime registry to provide the bulk of its foreign exchange earnings. The restoration of the infrastructure and the raising of incomes in this ravaged economy depend on the implementation of sound macro- and microeconomic policies of the new government, including the encouragement of foreign investment.[according to whom?]

  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ a b c d e f g h i j k l m n o p q "AFRICA :: LIBERIA". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  4. ^ a b c d e "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 22 January 2020.
  5. ^ "Global Economic Prospects, January 2020 : Slow Growth, Policy Challenges" (PDF). openknowledge.worldbank.org. World Bank. p. 147. Retrieved 22 January 2020.
  6. ^ "Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) - Liberia". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  7. ^ "GINI index (World Bank estimate) - Liberia". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  8. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  9. ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  10. ^ "Labor force, total - Liberia". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  11. ^ "Employment to population ratio, 15+, total (%) (national estimate) - Liberia". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  12. ^ "Report on the Liberia Labour Force Survey 2010" (PDF). Liberia Institute of Statistics and Geo-Information Services (LISGIS). February 2011.