By Catherine B. Nyenkan
MONROVIA, March 21 (LINA) – The International Monetary Fund (IMF) has disclosed that Liberia’s economy is poised for recovery following the difficulties it experienced over the last five years.
The Head of the IMF Mission to Liberia, Mika Saito, cited the Ebola crisis and its devastating humanitarian impact, combined with a large decrease in export prices, the ongoing withdrawal of UN peacekeepers and some disruption associated with the 2017 elections as part of negative impacts on the Liberian economy.
The comments of the IMF head of mission were contained in a report presented to journalists at a press conference held at the Ministry of Finance and Development Planning in Monrovia on Tuesday.
Saito said that with the economic shocks and the Ebola crisis now in the past, assuming the implementation of good policies, including measures to improve the business climate and support private sector development, the medium-term outlook appears favourable.
Saito also noted that the peaceful political transition will also offer support to the domestic economy through improved consumer and investor confidence.
She said the IMF Mission strongly supports the Weah administration’s pro-poor agenda, adding that the needs of the poorest segments of the population are clearly large, noting that it is commendable that the nation’s authority has made this their policy priority.
According to her, the need to increase investment spending is coming at a time when resource mobilization from external borrowing, domestic revenue generation and aid is facing challenges.
« Debt levels have been rising steadily in recent years. While the risk of debts distress remains moderate, borrowing space has clearly been reduced over time, » she indicated.
Looking forward, Saito noted that future obligations will need to be undertaken with caution specifically with respect to securing favourable terms and conditions.