CAPITOL HILL, Monrovia — In a landmark State of the Nation Address (SONA) delivered this Monday, President Joseph Nyuma Boakai declared Liberia’s economy resilient and on a stronger growth path. His report to the Legislature painted a picture of a nation undergoing a significant financial turnaround, highlighted by a 5.1 percent economic growth rate in 2025 and inflation rates hitting a 20-year low.

President Boakai attributed these gains to disciplined fiscal management and sound economic policies that have begun restoring international confidence. He noted that as of 2024, the economy showed resilience with steady growth, declining inflation, and renewed momentum across key sectors.

Growth Exceeds Forecasts as Inflation Tumbles

Liberia’s 5.1 percent growth in 2025 outperformed both the initial 4.6 percent forecast and the 4.0 percent growth recorded in 2024. This expansion was fueled by a high-performing mining sector, which expanded by 17 percent, and a surge in exports totaling approximately US$2.1 billion.

Perhaps the most striking achievement was the sharp decline in inflation. By December 2025, inflation fell to 4 percent—the lowest level in over two decades—down significantly from the 10 percent rate inherited by the administration when it took office in 2024.

Strengthening Reserves and Currency Stability

The nation’s financial cushion saw a major boost, with gross international reserves rising from US$475 million in 2024 to US$576 million in 2025. This stability has trickled down to the foreign exchange market, where the Liberian dollar appreciated by at least 3 percent against the US dollar since September 2025.

Despite a mid-year reduction in donor support, the government met nearly all IMF Performance Criteria by June 2025. This commitment to reform helped secure US$381 million in reaffirmed donor commitments for the upcoming year, alongside nine new financing agreements totaling US$334.98 million to support infrastructure and human capital.

A Historic Revenue Milestone

President Boakai described the 2025 donor fluctuations as a wake-up call that accelerated domestic reforms. The results were historic. For the 2025 fiscal year, total revenue reached US$885.8 million, exceeding targets by US$5.1 million. Domestic revenue alone hit **US$847.7 million**, the highest ever recorded in Liberia’s history.

This represents a US$148 million increase over 2024, the largest single-year gain the country has seen. Following this strong performance, the President announced that a supplemental budget will be submitted to the Legislature next month.

Debt Management and Future Reforms

While public debt stands at US$2.8 billion, divided between US$1.2 billion in domestic debt and US$1.6 billion in external debt, the government remains current on its obligations. The state paid US$120.1 million in debt service in 2025. To further strengthen the fiscal framework, the administration is tightening tax exemptions and preparing for the implementation of a Value-Added Tax (VAT) by 2027.

Investment, Jobs, and the Cost of Living

The administration highlighted approximately US$4 billion in committed investments, including major rail corridor agreements with ArcelorMittal and Ivanhoe for the Yekepa–Buchanan line. In the energy sector, eight new petroleum agreements signed in 2025 could attract another US$800 million in capital.

For the average citizen, the President pointed to easing commodity prices:

• Rice (25kg): US$14.50
• Flour (100lb): US$35.00
• Fuel: Stabilized at approximately US$4.00 per gallon.

On the employment front, over 70,000 jobs were created in 2025. Looking forward, the Youth Entrepreneurship and Investment Bank is expected to support 30,000 youth-led businesses, aiming to generate an additional 120,000 jobs.

Economic Outlook: 2026–2028

President Boakai concluded with an optimistic forecast, projecting sustained growth above 5 percent in 2026 and an average of 6 percent through 2028. This trajectory is expected to be driven by aggressive infrastructure investment, agriculture, and private-sector expansion.