CAPITOL HILL, Monrovia -- President Joseph Nyuma Boakai on Monday declared that Liberia's economy is rebounding, pointing to falling inflation, rising foreign reserves and growing exports as signs of renewed stability, as he delivered his State of the Nation Address (SONA) before a joint session of the 55th National Legislature.
Boakai said the economy posted "measurable progress" in 2025 despite lingering global pressures, attributing the gains to tighter fiscal discipline, monetary reforms and improved governance. He projected 2.5% GDP growth for 2026 and an average annual growth rate of about 6% from 2026 to 2028.
"The outlook reflects confidence in our economic direction and the effectiveness of the policies we have pursued," Boakai told lawmakers.
Inflation Falls to 4%
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A major highlight of the address was inflation control. Boakai announced that inflation dropped to 4% by December 2025, which he described as the lowest level in more than two decades. Inflation stood at 10% in 2024, he said.
The president attributed the decline to tighter monetary policy, prudent fiscal management and expectations of easing import costs.
Foreign Reserves Climb
Boakai also reported improved external buffers, saying gross international reserves rose from US$475 million in 2024 to US$576 million in 2025--an increase of US$101 million.
He added that net international reserves exceeded International Monetary Fund benchmarks and were projected to reach about US$280 million by the end of 2025.
Exports Rise by 31%
Exports, the president said, increased by more than 31% to approximately US$2.1 billion, driven by stronger performance across key sectors and expected new investment in iron ore mining.
Since September 2025, Boakai noted, the foreign exchange market has remained stable due to stronger liquidity management, fiscal discipline and improved export earnings. Over the same period, he said, the Liberian dollar appreciated by at least 3% against the U.S. dollar.
Digital Finance Expands
Boakai cited progress on financial inclusion, reporting that digital financial platforms processed more than 275,000 transactions in 2025, valued at over L$375 million--about US$2.7 million.
He said the government aims to raise financial inclusion from 52% in 2024 to 70% by 2029.
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Donor Drop Triggered Fiscal Pressure
The president acknowledged that the economy faced pressure after a sharp decline in donor support in mid-2025, which he said disrupted financing for major social and development programs.
In response, Boakai said the government tightened fiscal controls while protecting spending in priority areas, including health and education.
MCC Eligibility Reaffirmed
Boakai also thanked Liberia's bilateral and multilateral partners and welcomed the country's reaffirmed eligibility for a second Millennium Challenge Corporation (MCC) compact, describing it as a significant boost for energy investment and job creation.
He did not disclose when the compact negotiations would conclude but said his administration views the opportunity as a key pillar of its growth agenda.
