In his second State of the Nation Address, Liberian President Joseph N. Boakai painted a picture of significant economic progress and improved living conditions under his administration. He highlighted a range of positive economic indicators, attributing the turnaround to decisive policy reforms and strategic actions implemented by his government. President Boakai emphasized the challenging economic landscape he inherited, marked by declining growth, double-digit inflation fueled by rising food and fuel prices, a widening account deficit, dangerously low international reserves, and a substantial debt burden. He also acknowledged the hardships faced by civil servants due to salary harmonization and delayed payments. Contrasting this bleak picture with the current state of affairs, President Boakai proudly announced a revised real GDP growth rate of 5.1% in 2024, driven by key sectors such as mining, agriculture, fisheries, and services. He credited strategic investments in infrastructure and energy development, supported by international partners like the World Bank, African Development Bank, European Union, and USAID, for bolstering this economic expansion.
President Boakai underscored his government’s prudent management of inflation, reporting a reduction from 10.1% in 2023 to 7.7% by the end of 2024, with further decline to 6.0% projected for 2025. He also highlighted the improvement in international reserves to US$458.9 million and the appreciation of the Liberian dollar against the US dollar by 4.7%. The President attributed the strengthening financial system to the Central Bank’s reduction of the monetary policy rate, leading to a 9.1% increase in private sector credit. He further emphasized ongoing efforts to enhance financial governance by reducing operational costs and addressing audit recommendations.
A key aspect of the President’s address was the emphasis on Liberia’s participation in the IMF’s Extended Credit Facility (ECF) program. He explained that this program would play a crucial role in rebuilding reserves, strengthening fiscal policy, and enhancing domestic revenue through improved tax collection and streamlined exemptions. Modernizing financial systems, improving access to finance for micro, small, and medium enterprises (SMEs), and increasing financial inclusion, which now covers 52% of the adult population, were also cited as significant achievements.
President Boakai highlighted the implementation of the National Electronic Payment Switch (NEPS) and the transition towards a cashless economy as further demonstrations of his government’s commitment to building a stable, inclusive, and resilient economy. He also touched upon ongoing reforms in the insurance sector, including the establishment of an independent Insurance Commission. The establishment of Special Economic Zones was presented as a strategic initiative to diversify the economy, promote job creation, and foster inclusive development.
President Boakai’s address can be interpreted as a report card on his administration’s economic performance, showcasing a narrative of recovery and progress. He contrasted the challenging economic situation inherited from the previous administration with the perceived improvements achieved under his leadership. The emphasis on specific policy measures and their positive outcomes aimed to demonstrate his government’s commitment to economic stability and improved living standards for Liberians. The address also highlighted the importance of international partnerships and participation in global financial programs like the IMF’s ECF in supporting Liberia’s economic recovery and development.
The President’s narrative of economic progress serves several purposes. It aims to bolster public confidence in his administration’s economic management, attract further investment, and solidify his political standing. By highlighting the improvements in key economic indicators and outlining future policy directions, he seeks to project an image of competence and forward-thinking leadership. However, the true test of his administration’s economic policies lies in their long-term impact on the lives of ordinary Liberians. Sustaining economic growth, creating jobs, and addressing the root causes of poverty remain crucial challenges that will require continued effort and effective governance. While the President’s address presented a positive outlook, continued monitoring and evaluation of the implemented policies are essential to assess their true impact and ensure that the benefits of economic growth reach all segments of Liberian society.
