Several officials of the CDC-led government are said to be having series of technical financial questioning from a team of International Monetary Fund (IMF) who have been in the country few weeks ago to help curtail what is being considered as ‘Wasteful Spending’ on the part of the Liberian Government being headed by international soccer hero, now President of Liberia, George Manner Weah.
According to report, the visiting Executive Board of the International Monetary Fund (IMF) has said policy uncertainty and slippages have imposed a significant toll on the economy of Liberia over the past two years, noting that particularly, higher fiscal deficits and accommodative monetary policy led to rapid depreciation of the Liberian dollar and increased inflation thereby, eroding the purchasing power of the poor.
In its assessment report published Tuesday, 11 June by the Board of Directors in line with Article IV consultation with Liberia, the IMF notes the near- and medium-term outlook under the baseline scenario is challenging for Liberia, and growth is projected to slow further to about 0.4 percent in 2019 and remain below 2 percent into the medium-term.
The report details that in the baseline scenario, the authorities face the possibility of a forced, abrupt adjustment when domestic and external financing options are exhausted, adding that an alternative reform scenario is therefore presented as a more viable alternative, in which growth weakens somewhat in the near term, due to proactive fiscal and monetary tightening, but picks up significantly over the medium term to exceed 5 percent by 2024.
“Executive Directors noted that Liberia is facing major economic challenges and welcomed the authorities’ efforts to bolster macroeconomic stability. Directors emphasized that steadfast and well-sequenced policies and structural reforms are essential to enhance macroeconomic stability and promote higher, sustainable, and inclusive growth. They welcomed the authorities’ Pro-Poor Agenda for Prosperity and Development (PAPD) and agreed that garnering support from the international community will be important.