-As Famous Liberian Economist Samuel P. Jackson Says: “Lower inflation means goods and services are cheaper than our neighbors.”
IPNEWS – Ahead of President George Manneh Weah’s sixth State of the Nation Address (SONA), which he is expected to deliver on Monday, January 30th, 2023, this newspaper has been looking back at previous SONAs, in order to project what the President is going to highlight as some of the successes during his 6-year term as President.
The President is by the dictates of the 1986 Constitution required to present his Legislative Agendas for the ensuing session of the Legislature on the Fourth Working Monday of January of each year of h/er term(s).
January 30th, 2023 isn’t the fourth Monday in January 2023. But the first Monday was celebrated as New Year’s Day in Liberia because the New Year’s Day fell on Sunday in Liberia. And so, the first Monday is not counted as a working day. So, the fourth-working Monday was shifted to the last Monday of January.
Mr. Weah is going to, in fulfillment of Article 58 of the Liberian Constitution, stand before the millions of Liberians through their 103 representatives in the Capitol Building, to present the Legislative Program of his Administration. Article 58 also mandates the President to, on the fourth working Monday of January each year, report to the people of Liberia on the State of the Republic, covering the economic condition of the nation, including expenditure and income.
Liberia’s Economic Outlook
The Liberian economy is experiencing its strongest and most sustained growth since the onset of the Ebola Virus Disease in 2014. According to the IMF, Liberia’s economic growth rose above three percent in 2022 and will exceed five percent in 2023, as the global economy recovers. Moreover, domestic resource mobilization (DRM) from the effective tax administration policies of the Weah Administration has seen the country’s budget increased to nearly 800 million United States dollars in 2022.
Inflation has moderated to single digits, stabilizing the Liberian dollar to US dollar between L$150 to L$160, and improving purchasing power when compared to other countries, including Ghana where the Cedi, that country’s currency, has depreciated by more than 50 percent year on year from 2021 to 2022.
According to famous Liberian Economist, Samuel P. Jackson, “Lower inflation means goods and services are cheaper than our neighbors.”
Electronic Payment Systems
The country is experiencing a revolution in electronic payment systems with more than 25 percent of GDP being intermediated by banks. That improves the circular flow of money, with producers and consumers using payment systems like mobile money, credit cards including Visa and Mastercard. Financial inclusion, the percentage of population with bank accounts has increased with more than 30 percent of adults using the country’s integrated payment system.
Much of the global economy is still suffering from the negative effects of the Covid_19 Pandemic, which saw a steep decline in economic activities, including reduced income and standards of living. In Liberia, the opposite is true. Liberia was among ten percent of countries on the planet that saw an increase in the human development index (HDI), moving from 480 to 481, a modest increase but nevertheless an increase. This is all due to the sound economic policies of President Weah and his team of economists.
Moreover the 2022 UNDP Human Development Report also indicates that Liberia has the highest life expectancy in the Mano River Union, with Liberians now expected to live beyond 61 years, and that number is higher at 64 from the World Bank Development Indicators. Liberia was also among only 20 countries on the planet that saw a substantial decrease in multidimensional poverty, according to the United Nations Multidimensional Poverty Report of 2022.
The official development assistance to Liberia has substantially reduced as a percentage of GDP since 2017 due to the United Nations Mission in Liberia’s (UNMIL) drawdown and the country is using own source revenues for security, police and the army. Yet, despite the use of own source revenues, security is improving despite challenges of logistics to state security.
The prospects for sustained economic growth and development look positive due to projections by Liberian national authorities including the Central Bank, Ministry of Finance and Development Planning and our international partners, the World Bank and IMF. Accordingly, Liberia should see increasing prosperity with more income and jobs created in the near to midterm, and all this indicates the election of President George Weah, though it will be rough, and tumble appears to be certain.
