Mining-led expansion creates wealth, but millions remain vulnerable as jobs, electricity, infrastructure and public enterprise accountability threaten to undermine the benefits of economic growth.
MONROVIA – Liberia’s economy is growing, but the number of people struggling to meet their basic needs is increasing, according to a new World Bank report that raises serious questions about whether the country’s economic progress is improving the lives of ordinary citizens.
The World Bank estimates that extreme poverty in Liberia increased from 34.6 percent in 2024 to 36.1 percent in 2025, even as the economy expanded by 5.1 percent during the same year.
The findings expose a troubling contradiction in the country’s economic performance: while national output is increasing, a substantial portion of the population is still struggling with unemployment, low incomes, high business costs and limited access to essential services.
The figures were highlighted during the launch of the World Bank Group’s seventh Liberia Economic Update on November 3, 2026, in Monrovia.
The report, titled “Beyond Growth: Addressing Structural Constraints to Job-Rich Growth in Liberia,” examines why economic expansion has not translated into sufficient employment opportunities and meaningful poverty reduction.
World Bank Country Manager for Liberia Georgia Wallen described the situation as a paradox: the economy is growing, yet more people are struggling to meet basic needs.
Her message presents a significant challenge for President Joseph Nyuma Boakai’s administration, which has repeatedly emphasized economic recovery, investment, job creation and improved living conditions under its ARREST Agenda for Inclusive Development.
The report does not suggest that economic growth has no value. Instead, it warns that growth driven by sectors that employ relatively few people cannot, on its own, lift large numbers of households out of poverty.
THE POVERTY FIGURES: WHAT DO THEY MEAN?
The World Bank’s latest estimates indicate that extreme poverty rose from 34.5 percent in 2023 to 34.6 percent in 2024 and then to 36.1 percent in 2025.
That means the estimated poverty rate increased by 1.5 percentage points between 2024 and 2025.
Although the change may appear small when expressed in percentage points, it represents a concerning reversal in a country where many households already struggle to afford food, transportation, electricity, housing and education.
The figures also require an important explanation.
Liberia’s latest official household poverty survey dates back to 2016. The World Bank therefore uses economic data, inflation adjustments and projections to estimate more recent poverty levels.
The estimates use the revised international extreme-poverty benchmark of US$3 per person per day, measured in 2021 purchasing-power-parity terms.
This is not the same as saying that the World Bank recently visited households across Liberia and counted how many people were living below the poverty line.
The 36.1 percent figure is a model-based estimate, not a fresh nationwide household survey result. It is important that government officials, political actors and the public understand this distinction when discussing the findings.
Nevertheless, the estimates are an important warning about the direction of poverty and the limitations of economic growth that does not generate enough productive jobs.
MINING IS DRIVING GROWTH, BUT WHERE ARE THE JOBS?
One of the report’s central concerns is the structure of Liberia’s economic growth.
According to the World Bank, the economy expanded by 5.1 percent in 2025, compared with 4 percent in 2024.
Mining was a major contributor, growing by 17 percent during the year. The services sector expanded by 4.6 percent, while agriculture grew by 2.6 percent.
While the mining sector contributes significantly to national output, the World Bank argues that its capital-intensive nature limits the number of jobs it creates compared with sectors that employ larger portions of the population.
This is particularly important in Liberia, where agriculture, small businesses, trading and informal services provide livelihoods for many citizens.
The report estimates that approximately 78 percent of workers are engaged in vulnerable informal employment. It also indicates that nearly nine out of every ten businesses are single-person enterprises.
These figures expose the weakness of an economy in which many people work without the security, productivity and earning potential associated with stable formal employment.
A trader selling goods along a roadside, a farmer struggling to transport produce, a mechanic operating a small workshop or a young person depending on occasional daily work may contribute to economic activity without earning enough to escape poverty.
The World Bank’s concern is that economic growth must reach these people through better-paying jobs, stronger businesses and improved opportunities.
For Liberia, the challenge is not simply to increase GDP. It is to create an economy in which ordinary citizens can earn enough to support their families.
THE COST OF DOING BUSINESS IS HOLDING BACK ENTERPRISES
The report also identifies structural challenges that make it difficult for Liberian businesses to grow.
Among the concerns are high input and transportation costs, unreliable electricity, limited access to financing and weak connections between producers and markets.
These problems affect small businesses disproportionately.
A trader who must purchase fuel to operate a generator faces additional operating costs. A farmer who cannot transport produce to major markets may lose income because of poor roads and expensive transportation. A small manufacturer struggling to obtain affordable electricity and credit may be unable to expand production or employ additional workers.
These are not merely business complaints. They directly affect employment, household income and the prices consumers pay.
The report therefore places particular emphasis on improving the environment in which private businesses operate.
For the Boakai administration, the findings raise questions about whether existing economic policies are sufficiently addressing the daily obstacles confronting small businesses and entrepreneurs.
GOVERNMENT’S FISCAL PERFORMANCE: PROGRESS WITH A WARNING
Despite its concerns about poverty, the World Bank acknowledged improvements in Liberia’s macroeconomic performance.
The fiscal deficit narrowed to 2.1 percent of GDP in 2025, down from 2.5 percent in 2024.
Public debt also declined from 56.4 percent to 55.1 percent of GDP.
Inflation remained contained, supported by monetary policy, a broadly stable exchange rate and moderate international food and fuel prices.
These developments suggest that the government and the Central Bank made progress in maintaining economic stability.
However, the report also points to a difficult trade-off.
The reduction in the fiscal deficit was partly associated with a decline in capital spending, which fell from 8.5 percent to 5.7 percent of GDP.
That raises concerns because Liberia urgently needs investment in roads, electricity, water systems and other infrastructure to reduce the cost of doing business and encourage private-sector expansion.
In other words, controlling government expenditure is important, but cutting investment in infrastructure can also weaken the foundations needed for long-term growth.
The World Bank is therefore urging Liberia to maintain fiscal discipline while improving the quality and effectiveness of public investment.
STATE-OWNED ENTERPRISES: A MAJOR ACCOUNTABILITY PROBLEM
A significant portion of the report examines the management and oversight of state-owned enterprises, including institutions responsible for electricity, water, ports and fuel services.
These enterprises are important because their performance affects the national budget, the cost of doing business and the quality of services available to citizens.
The World Bank identifies serious weaknesses in financial reporting, auditing, transparency and oversight across the state-owned enterprise sector.
According to findings presented during the report’s launch, financial information was submitted for only 83 of 276 potential entity-years over a six-year period.
Furthermore, 25 of the 46 entities operating through 2025 had never submitted a financial return.
The report also highlights weaknesses in auditing. Only four audits across the available state-enterprise portfolio received unqualified opinions, while all ten available compliance audits received adverse opinions.
These findings raise serious questions about how effectively public enterprises are being monitored and whether government has sufficient information to determine their financial condition and performance.
The concern is not simply whether state-owned enterprises are making profits or losses.
It is whether public institutions can account for the money they receive, the services they provide, the debts they accumulate and the financial risks they transfer to the government and, ultimately, taxpayers.
The establishment of the State-Owned Enterprises Authority of Liberia, following the signing of its law in February 2026, was described by the World Bank as a positive step toward strengthening oversight.
But the institution must demonstrate that it can improve reporting, enforce accountability and provide reliable information about the performance of public enterprises.
LEC’S US$34 MILLION DEBT: GOVERNMENT AGENCIES ACCOUNT FOR MOST OF IT
The report’s discussion of the Liberia Electricity Corporation presents another example of the relationship between public enterprise management and government finances.
The World Bank’s findings indicate that LEC was owed approximately US$34 million, with government institutions accounting for about US$30.8 million of that amount.
That means government and its agencies were responsible for roughly 91 percent of the outstanding money owed to the electricity utility.
The finding is particularly significant because electricity is one of the major costs affecting businesses and households in Liberia.
When government institutions fail to pay their electricity bills, the financial burden can weaken the utility’s ability to maintain infrastructure, improve service delivery and meet its operational obligations.
The issue also raises a question of public accountability: how can government expect private businesses and ordinary citizens to pay their electricity bills when public institutions themselves accumulate substantial unpaid obligations?
The World Bank cautions that subsidies to public enterprises should not automatically be interpreted as evidence of poor performance, since some subsidies finance legitimate public service obligations.
However, it insists that the government must have reliable information to determine what these enterprises cost, what they deliver and whether public resources are being used effectively.
LIBERIA’S EXPORT DEPENDENCE CREATES ANOTHER ECONOMIC RISK
The report also warns that Liberia remains heavily dependent on a narrow range of export commodities.
Iron ore and rubber account for more than 90 percent of the country’s exports, leaving the economy exposed to fluctuations in international commodity prices.
When global prices decline, the effects can reach government revenue, foreign exchange earnings, investment and employment.
This dependence makes economic diversification particularly important.
Liberia has significant potential in agriculture, manufacturing, fisheries, tourism and other productive sectors, but those industries require reliable electricity, accessible roads, financing, skills development and a business environment that encourages investment.
Without meaningful diversification, economic growth may continue to depend heavily on a few sectors while large numbers of citizens remain outside the benefits.
WHAT DOES THE REPORT MEAN FOR THE BOAKAI GOVERNMENT?
The findings arrive at a politically important moment for President Boakai’s administration.
The President campaigned on improving the lives of ordinary Liberians, creating opportunities, addressing infrastructure challenges and restoring confidence in public institutions.
His ARREST Agenda also places emphasis on agriculture, roads, rule of law, education, sanitation and tourism.
But the World Bank’s latest assessment raises questions about whether the country’s economic expansion is producing enough jobs and income opportunities to deliver those promises.
The government can point to the 5.1 percent economic growth rate, improved fiscal indicators and progress in selected sectors.
However, those achievements must be measured against the economic conditions experienced by ordinary households.
A country can record impressive growth figures while families continue to struggle with the price of rice, transportation, rent, electricity and school expenses.
The real test of economic recovery is whether citizens can find decent work, earn better incomes, operate profitable businesses and afford essential services.
The World Bank’s findings do not, by themselves, establish that every Liberian is worse off or that government policies are solely responsible for the estimated increase in poverty.
But they provide an important basis for asking whether the administration is doing enough to ensure that economic growth reaches the wider population.
QUESTIONS THE GOVERNMENT MUST ANSWER
The findings raise several questions that deserve clear responses from the Ministry of Finance and Development Planning, the Central Bank of Liberia, the Ministry of Commerce and Industry and other relevant institutions.
Why has extreme poverty been estimated to increase despite economic growth of 5.1 percent?
What specific measures is the government implementing to turn mining-sector growth into employment and opportunities for Liberian businesses?
What progress has been made in improving electricity supply and reducing the cost of doing business?
How much public money is owed to state-owned enterprises, and what measures are being taken to settle outstanding government obligations?
Why have so many state-owned enterprises failed to submit financial reports, and what consequences will follow?
What is the government’s plan to increase investment in roads, electricity and agriculture while maintaining fiscal discipline?
And perhaps most importantly, when will Liberia conduct a new nationwide household income and expenditure survey to provide updated, reliable poverty statistics?
The government should also explain how its development programmes are expected to reduce poverty and improve the incomes of vulnerable households.
THE NEED FOR CREDIBLE NATIONAL POVERTY DATA
The reliance on modeled poverty estimates also exposes a major weakness in Liberia’s national statistics system.
The country’s latest official household poverty survey dates back to 2016. Nearly a decade later, policymakers and the public still need more current household-level information to understand how poverty has changed across counties, rural communities and urban areas.
The Liberia Institute of Statistics and Geo-Information Services, working with the Ministry of Finance, the Central Bank and development partners, has an important role to play in strengthening the country’s data collection and reporting systems.
A new household survey would help establish a clearer picture of poverty, unemployment, household expenditure, income distribution and access to essential services.
Without reliable and timely data, government risks making policy decisions without fully understanding the conditions confronting the people those policies are intended to serve.
The debate should therefore not be reduced to whether the World Bank’s estimates are politically convenient or inconvenient.
The more important question is why Liberia still lacks sufficiently current official household data to independently assess the living conditions of its population.
GROWTH MUST BE FELT IN THE HOMES OF LIBERIANS
The World Bank’s latest report delivers both recognition and a warning.
Liberia has made progress in economic growth, fiscal management and macroeconomic stability. But those achievements will remain incomplete if they do not create jobs, improve household incomes and reduce poverty.
The estimated increase in extreme poverty from 34.6 percent to 36.1 percent is a warning that economic expansion alone is not enough.
Mining can increase national output. Government can reduce the fiscal deficit. Public debt can decline. But if farmers cannot move their produce, businesses cannot afford electricity, young people cannot find decent jobs and families cannot meet basic needs, the benefits of growth will remain limited.
For President Boakai, the challenge is to demonstrate that the country’s economic performance is producing measurable improvements in the lives of ordinary citizens.
Liberians do not only need an economy that grows. They need an economy that creates jobs, raises incomes, reduces poverty and gives families a genuine opportunity to live better.
That is the real test of the government’s economic agenda—and the central warning emerging from the World Bank’s latest assessment.
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