Liberia: Third Review Under the Extended Credit Facility Arrangement and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Liberia

This paper presents Liberia’s Third Review under the Extended Credit Facility (ECF) Arrangement and Request for an Arrangement under the Resilience and Sustainability Facility. This paper analyzes recent economic developments and reform progress in an economy experiencing strong growth momentum amid rising external risks. Economic growth accelerated to 5.1 percent in 2025, supported primarily by increased mining production and continued implementation of the government’s ARREST Agenda for Inclusive Development. The authorities maintained sound macroeconomic policies and advanced structural reforms under the ECF arrangement, contributing to robust economic performance. However, worsening global conditions, including elevated oil prices and declining bilateral assistance, have heightened downside risks to economic stability. The study emphasizes the importance of strengthening governance and institutional capacity, particularly through reinforcing the Liberia Anti-Corruption Commission and ensuring transparency in public officials’ asset declarations. Continued implementation of governance diagnostic recommendations is viewed as essential for addressing institutional weaknesses. Additionally, the Resilience and Sustainability Facility arrangement is expected to support climate adaptation measures, improve pandemic preparedness, strengthen collaboration with development partners, and mobilize external financing for sustainable development.