Liberia Economic Forecast

Unfortunately, a large portion of Liberia’s economy was devastated because of corruption, poor government management, and civil war. Although many sections of the economy have been damaged, facilities and infrastructure were hit the hardest. During the tough times, several of Liberia’s established companies left the country and because they took knowledge and capital along, the economy experienced further damage. However, with the civil war ending and a new democratic government being elected in 2006, the majority of these companies have returned to Liberia.

Unfortunately, a large portion of Liberia’s economy was devastated because of corruption, poor government management, and civil war. Although many sections of the economy have been damaged, facilities and infrastructure were hit the hardest. During the tough times, several of Liberia’s established companies left the country and because they took knowledge and capital along, the economy experienced further damage. However, with the civil war ending and a new democratic government being elected in 2006, the majority of these companies have returned to Liberia. However, Liberia is known for having rich natural resources such as agriculture, fisheries, and farming, as well as fresh water, forests, mineral resources, and a perfect climate for growing crops. Liberia also produces and exports rubber and raw timber. All of this combined, along with good local industrial manufacturing, this country’s economy has seen growth. In addition, Liberia’s government has taken measures to bring corruption under control, create stronger connections with international donors, and boost private investments.

Liberia GDP Forecast

Throughout history, Liberia has been rated as one of the most prosperous economies in all of Africa primarily because of strong cultural relations with America, as well as close trade. Unfortunately, in 1980 the environment of this country changed dramatically due to the military coup. For years, Liberia experienced civil war, consumer unrest, and mismanagement of the government. In fact, government instability became so bad that businesses within the country were being forced to close. The good news is that by 2006, the Liberia GDP (Gross Domestic Product, Current Prices, US Dollar) started to turn around. This coupled with Liberia having significant mineral reserves and a favorable climate, the GDP for 2008 closed at $0.85 billion in US dollars. Over the next 24 months, a slight increase of 3.06% occurred, changing the GDP for 2009 to $0.876 billion in US dollars. Regarding predictions for 2010, forecasters believe the GDP will climb to $0.95 billion and for 2015 to $1.531 billion, all in United States currency.

Liberia Unemployment Forecast

Although this country has begun to stabilize and a number of sectors are starting to grow, employment is still a serious issue. Of the 3.5 million people that make up the Liberia population, only 1.4 million work. That means the Liberia unemployment rate is incredible at 85%. Obviously, with a rate that high, reform is mandated for Liberia to survive.

Liberia Inflation Rate Forecast

As far as the Liberia inflation rate, 2008 closed at 17.49%. From that time until the end of 2009, a solid reduction of 57.54% was experienced, putting 2009 at 7.27% and positioning the country at number 41 for world ranking. Using specific data, experts predict that inflation for 2010 will be somewhere around 7.15%, only a 3.69% difference from the previous year. Then when developing a forecast for 2015, this number should change slightly, closing at 5%.

Liberia Current Account Balance Forecast

Experts who watch world economies will forecast many things, such as the Liberia current account balance. With this, balance on goods and services, as well as current transfers and income (excluding financial and capital items) is determined. Closing numbers for 2009 showed that Liberia was at minus $0.209 billion in US dollars, positioning the country at number 85 for world rankings. From 2008 that reported minus $0.49 billion, this was a moderate reduction of 57.43%. Looking to the future, predictions for 2010 and 2015 show the current account balance ending at minus $0.39 billion and minus $0.301 billion US dollars, respectively.