-World Bank Discloses
World Bank-Liberia has unearthed sharp decline in the mining sector of Liberia thus contributing to the current economic crisis the country is faced with.
The mining sector had registered some positive growth of seven percent while the non-mining sector to include: agriculture, manufacturing and services remains at a negative growth percentage of 3.4 percent. This decline and difficulties have an impact on the extent to which government generate taxes.
“We also have seen a sharp rise of 24 percent inflation as of 2018 June and 28.5 percent inflation in June of this year. The economy can be broken down into two sectors: the mining and non-mining sectors,” Daniel Boakye, World Bank Liberia Country Economist.
“Some of the expenditure commitment, government is almost in revisable, so that has created high pressure for government in term of being able to maintain special obligations.”
Considering the external sector, the main challenge is that exports are still not positive and the nation still has challenge in its account balance. When this happens, it shows that government will have to find ways of fixing or plugging the deficit it have in the current.
Boakye attributed this to reasons that government often borrows more to close the account gap and some time enters her reserved to pay for some of its liabilities or external obligation.
He asserted that the World Bank looking at the trade balance together with all of the financing in-floor and out-floor of Liberia, the Bank had projected an account deficit through increase in 2019.
Boakye further bewailed “We are also inform by the household expenditure survey that was conducted, that roughly about half of the population are below the poverty line and given the fact that already the economy is declining, if you look at it per capitol term, it will reflect on the extent to which poverty will alsoworsen.”
The medium term seems to be positive for Liberia, reason for which central government had recommitted itself to undergoing some reforms, the World Bank Economist discloses.
He spoke at the 20th edition of Africa’s Pulse, the World Bank’s twice-yearly economic update for the region held October 9, 2019 at the World Bank-Liberia Office, German Embassy Compound, in Congo Town.
The World Bank is also looking forward to government implementing some of the recommendations from the recent Economic Forum as it would enable national government to move toward a positive goal trade moving onward.