Economy of Liberia

Economy of Liberia

Currency	Liberian dollar (LRD) United States dollar (USD)
Trade organizations	AU, AfCFTA (signed), African Development Bank, ECOWAS, MRU, WAMZ, WTO, Group of 77
Country group	Least Developed[1] Low-income economy[2]
Statistics
Population	5,073,296 (2020 est.)[3]
GDP	$3.222 billion (nominal, 2019 est.)[4] $6.471 billion (PPP, 2019 est.)[4]
GDP rank	158th (nominal, 2019) 159th (PPP, 2019)
GDP growth	2.5% (2017) 1.2% (2018) −1.4% (2019e) 1.4% (2020f)[5]
GDP per capita	$704 (nominal, 2019 est.)[4] $1,414 (PPP, 2019 est.)[4]
GDP per capita rank	174th (nominal, 2019) 178th (PPP, 2019)
GDP by sector	agriculture: 34% industry 13.8% services 52.2% (2017 est.)[3]
Inflation (CPI)	20.5% (2020 est.)[4]
Population below poverty line	54.1% (2014 est.)[3] 40.9% on less than $1.90/day (2016)[6]
Gini coefficient	35.3 medium (2016)[7]
Human Development Index	0.465 low (2018)[8] (176th) 0.314 low IHDI (2018)[9]
Labor force	1,639,258 (2019)[10] 74.6% employment rate (2016)[11]
Labor force by occupation	agriculture: 70% industry: 8% services: 22% (2000 est.)[3]
Unemployment	2.8% (2014 est.)[12]
Main industries	mining (iron ore and gold), rubber processing, palm oil processing, diamonds
External
Exports	$260.6 million (2017 est.)[3]
Export goods	rubber, timber, iron, diamonds, cocoa, coffee[3]
Main export partners	Germany 36.2%   Switzerland 14.2%  United Arab Emirates 8.8%  United States 6.8%  Indonesia 4.7% (2017)[3]
Imports	$1.166 billion (2017 est.)[3]
Import goods	fuels, chemicals, machinery, transportation equipment, manufactured goods; foodstuffs[3]
Main import partners	Singapore 29.8%  China 24.4%  South Korea 17.5%  Japan 9.4% (2017)[3]
Current account	−$627 million (2017 est.)[3]
Gross external debt	$1.036 billion (31 December 2017 est.)[3]
Public finances
Government debt	34.4% of GDP (2017 est.)[3]
Budget balance	−4.3% (of GDP) (2017 est.)[3]
Revenues	553.6 million (2017 est.)[3]
Expenses	693.8 million (2017 est.)[3]
Economic aid	recipient: International multi-billion dollar debt relief and development aid
Foreign reserves	$459.8 million (31 December 2017 est.)[3]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Liberia is extremely underdeveloped, with only $3.222 billion by gross domestic product as of 2019, largely due to the First (1989–1996) and Second Liberian Civil War (1999–2003). Liberia itself is one of the poorest and least developed countries in the world, according to the United Nations.

Until 1979, Liberia's economy was among the more developed and fastest-growing in Sub-Saharan Africa, but after the 1980 coup d'état, it declined, and the civil war destroyed much of Liberia's economy and infrastructure, especially the infrastructure in and around the nation's capital, Monrovia. The war also caused a brain drain and the loss of capital, as the civil war involved overthrowing the Americo-Liberian minority that ruled the country. Some have returned since 1997, but many have not.

Liberia is richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, but poor in human capital, infrastructure, and stability. Liberia has a fairly typical profile for Sub-Saharan African economies. The majority of the population is reliant on subsistence agriculture, while exports are dominated by raw commodities such as rubber and iron ore. Local manufacturing, such as it exists, is mainly foreign-owned.

The democratically elected government, installed in August 1997, inherited massive international debts and currently relies on revenues from its maritime registry to provide the bulk of its foreign exchange earnings. The restoration of the infrastructure and the raising of incomes in this ravaged economy depend on the implementation of sound macro- and microeconomic policies of the new government, including the encouragement of foreign investment.