The Inquirer (Monrovia)
4 November 2008
The International Monetary Fund (IMF) says economic activities in Liberia remain buoyant despite the impact of higher international food and fuel prices.
According to Mr. Robert Powell, head of the IMF delegation that visited the country recently, the real Gross Domestic Product (GDP) growth of around seven percent in 2008 is expected to be driven by higher production of rice and local timber, as well as in construction services.
Mr. Powell said, "Inflation has increased, but is expected to return to single digit by the end of 2009. Performance under the IMF-sponsored program has been strong."
The IMF delegation commended the Executive and Legislature for their continued commitment to strengthening public financial management, as well as Liberia's effort to improve governance and combat corruption.
Addressing a news conference prior to their departure from the country during the weekend, the IMF delegation said continued support from donors to Liberia is important for making the recently established anti-corruption commission fully operational.
"The mission has reached preliminary understanding with the authorities on key elements of the 2009 program to be supported by the IMF.
The program will continue to ensure that government's spending is limited to available cash resources and that the foreign exchange reserves of the Central Bank of Liberia (CBL) continue to increase," Mr. Powell said.
He noted that the structural measures would focus on making further improvements in the management of public finances, public auditing and supervising banks.
"Liberia's medium term outlook remains bright, but several risks are emerging as a consequence of the current global financial crisis and economic slowdown", the IMF delegation head said. Mr. Powell also noted that the global economic slowdown is likely to affect foreign direct investment, export and remittance flows to Liberia.
The IMF Delegation head told journalists that the CBL has made commendable progress in the past years in ensuring that all banks operating in the country meet capital adequacy standard and the mission also welcomes the CBL's plan to further increase the resources it allocated to bank supervision and inspection
Also speaking at the News conference, Finance Minister Augustine Ngafuan expressed happiness for the IMF delegation evaluation and commended those with whom they interacted, especially the Ways and Means committees of the House of Representative and the Liberian Senate.
He called for full implementation of the laws to conclude the Heavy Indebted Countries (HIPIC) process.
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