CAPITOL HILL, MONROVIA – President Joseph Nyuma Boakai has reported that Liberia’s economy recorded a 5.1 percent growth rate in 2025, even as his administration faced a sharp reduction in donor funding that disrupted development programs and placed pressure on public finances.
The President made the disclosure on Monday, January 26, 2026, while delivering his third State of the Nation Address (SONA) before a joint sitting of the Legislature at the Capitol Building in Monrovia, where he devoted significant attention to the state of the economy and Liberia’s external economic relations.
Addressing lawmakers, President Boakai said his administration had deliberately highlighted inherited economic difficulties in previous addresses, not to justify shortcomings, but to underscore the fragile conditions under which the government assumed office and the progress made since then.
“Last year, we emphasized the economic challenges inherited by this Administration, not as an excuse, but to highlight the hurdles faced and the progress achieved,” President Boakai told the joint chambers.
He said through disciplined fiscal management, sound economic policies, and strengthened partnerships, the government began restoring macroeconomic stability and rebuilding confidence in the Liberian economy during 2024, a trend that continued into 2025.
According to the President, Liberia’s 5.1 percent economic growth in 2025 exceeded both the 4.6 percent forecast and the 4.0 percent growth recorded in 2024, marking what he described as a notable improvement in overall economic performance.
He attributed the growth primarily to strong expansion in mining, agriculture, fisheries, and the services sector, stating that mining alone expanded by 17 percent during the year under review.
President Boakai further disclosed that exports increased by 31.5 percent, reflecting stronger external demand and improved production across key export-oriented sectors of the economy.
Looking ahead, he said ongoing structural reforms and infrastructure investments are expected to sustain the growth trajectory, with economic expansion projected to exceed 5 percent in 2026 and average about 6 percent between 2026 and 2028.
The President highlighted inflation control as one of the administration’s most significant achievements, announcing that inflation declined to 4 percent by December 2025, the lowest level recorded in more than two decades.
He noted that inflation stood at about 10 percent when his administration took office in 2024, and said the sharp decline signaled effective coordination between fiscal and monetary authorities, alongside easing import costs.
On the external sector, President Boakai reported that Liberia’s gross international reserves increased from US$475 million in 2024 to US$576 million in 2025, representing an increase of more than US$100 million within one year.
He added that net international reserves exceeded International Monetary Fund targets and were projected to reach approximately US$280 million by December 2025, while total exports rose to about US$2.1 billion.
President Boakai also pointed to the government’s medium-term strategic gold purchase program as a key initiative aimed at further strengthening reserves and enhancing Liberia’s resilience against external shocks.
He said Liberia met nearly all IMF performance criteria by June 2025, reaffirming the government’s commitment under the IMF Extended Credit Facility, which he described as critical to rebuilding reserves to cover 3.3 months of imports by 2027.
Turning to currency stability, the President said the foreign exchange market remained stable from September 2025 due to improved liquidity management, fiscal discipline, and stronger export earnings, leading to at least a 3 percent appreciation of the Liberian dollar against the US dollar.
President Boakai also highlighted progress in financial inclusion, reporting that the government accelerated the digital finance agenda, processing more than 275,000 transactions valued at over L$375 million and US$2.7 million by December 2025.
“Our goal is to raise financial inclusion from 52 percent in 2024 to over 70 percent by 2029,” the President said, framing digital finance as central to inclusive economic growth.
He said the Central Bank of Liberia is rebuilding public trust by strengthening governance, improving accountability, and managing government securities more transparently.
According to President Boakai, the Central Bank issued US$44.4 million in securities in 2025, rolled over US$132.1 million, and issued L$7.6 billion, while recording operational surpluses in both 2024 and 2025 for the first time in decades.
Despite these gains, the President acknowledged that Liberia’s development agenda faced one of its toughest tests in 2025 following an abrupt reduction in donor support during the second quarter of the year.
He said the sudden funding cut disrupted financing for critical social and economic projects, resulting in job losses, reduced incomes, and hardship for many Liberian families.
President Boakai told lawmakers that the government intervened to close funding gaps and keep essential services running, but admitted that the disruption slowed implementation and placed strain on national development plans.
He said the administration responded by instituting tighter fiscal controls while protecting critical social expenditures in health and education and strengthening domestic resource mobilization.
According to the President, reaffirmed commitments from donor partners in 2025 totaled US$381 million, including US$63 million in direct budget support and US$321.5 million for programs and projects.
During the year under review, Liberia concluded nine financing agreements totaling US$334.98 million, comprising US$98.58 million in concessional loans and US$236.4 million in grants to support infrastructure, human capital development, and natural resource management.
On relations with the United States, President Boakai announced that Liberia’s eligibility for a second Millennium Challenge Corporation Compact was reaffirmed in December 2025 after a review by the new U.S. administration.
He said the compact development process has commenced and will focus on investments in energy and job creation, which he described as critical to sustaining economic growth and expanding opportunities for Liberians.
President Boakai concluded by expressing appreciation to Liberia’s bilateral and multilateral partners, including the United States, European Union, China, the IMF, World Bank, African Development Bank, and regional and international institutions, for their continued support as Liberia works to restore stability and advance economic recovery.
