The President of the Republic of Liberia gave his first annual message to the nation on Monday at the national Legislature where he talked about the state of the economy.
President Boakai in his message said that the Weah’s government report about the GOL consolidated balance was false.
“The net international reserves position reported at the end of December 2023 was US$220 million. The report of US $40 million as the GoL’s consolidated account balance as at January 19, 2024 is not supported by the fact. The balance reported by the CBL as of the same date was US$20.5 million, highly encumbered, NOT US$40 million. To this end, we re-emphasize our earlier commitment to audit and ensure that regular audits will be a culture across all branches of government, not only the Executive.” He said.
For the president, the state of the economy is a cause for concern, with many of the citizens facing perennial unemployment and economic instability.
“We must not just recognize the pain and frustration that permeate our society, but also work together to introduce and pass legislations that will prioritize economic reforms that foster sustainable economic growth and job creation.” He added.
President Boakai said that during the past six years the economy faced challenges in terms of growth, job creation, and poverty reduction.
“Economic growth slowed between 2022 and 2023, from 4.8 percent to 4.6 percent. The rate of growth averaged about 1.5 percent, compared with 3.1 percent between 2012 and 2017 due in part to an underperforming economy and the existing geo-political global environment. Inflation during the period 2023 rose to 10.1 percent at the end of December, from 7.6 percent in 2022. Revenue collection as reported for 2023 stood at US$710.23 million while expenditure totaled US$796.32 million; hence, a large budget deficit of over US$80 million.” Boakai said.
He said his government intends to change this state of the economy by thinking “outside the box”; a paradigm shift away from reliance on primary commodity export to focusing on value addition with the private sector as the engine to drive the economy.
“Under my Administration, the empowerment of Liberian entrepreneurship through more support will help bring back THE MADE IN LIBERIA quest for inclusive and sustainable growth and jobs. In our quest to expand the economy, we will leverage Information Communication Technology (ICT) in creating jobs, especially for our youth. To achieve this, my Administration will train up to 10,000 young people in various digital skills in the first half of 2024. The Liberian middle-class goal must be a reality in the next 6 years.” He said.
President Boakai who seemed to be encumbered by the state of the economy, said that the debt burden of Liberia has clearly grown astronomically.
“The stock of public debt at End-December 2023 stood at US$2.21 billion, an increase of 8.67 percent compared to end-December 2022 stock of US$2.08 billion. This represents a sharp increase of US$1.33 billion compared to the end of December 2017 stock of US$878.17 million (representing 601.8 percent rise). As I am speaking, Liberia is under sanction for lack of payment of dues to the African Union and the African Development Bank. Also, a default in payment of about US$650,000 to the European Investment Bank is preventing a disbursement of over US$13 million for the Sanniquellie-Loguato road.” He indicated.
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