Economy Assessment

Liberia is generally a low-income country dependent on foreign aid and foreign workers' incomes. The country is extremely rich in terms of water resources, mineral fuels and forestry products and has an extremely favorable climate for agriculture. The main export products are iron ore, rubber, diamond and gold. Palm oil and cocoa have recently emerged as new export products. The government is also trying to revive the oil exploration and development sector with the production of timber.

In the 1990s and early 2000s, due to civil war and mismanagement, the country's economy, and especially the infrastructure around the capital, suffered considerable damage. During this period, there were great conflicts for the control of Liberia's natural resources. As a result of the end of the war in 2006 and the election of a Government as a democrat, many investments have fled the country. During the period of 2010-2013, the Liberian economy has achieved high growth rates due to commodity prices.

However, during the Ebola crisis that emerged in the region in 2014-2015, the economy started to decline again and left the country with many foreign investors and specialist capitals in the country. The government had to spend its limited resources for public investment in combating the virus. In this process, as the global commodity prices started to decline, the country's revenues decreased significantly.

In 2017, the production of gold and the export of gold were the biggest driving force of the economy. In addition, Arcelor-Mittal, the world's largest iron and steel producer, has increased its iron ore exports due to the new mine opened at Gangra Mountain. With the rehabilitation of the hydroelectric power plant at Kahve Dağı, electricity generation has increased, but the electricity tariff in the country is still high compared to the countries in the region and the electricity transmission infrastructure is extremely weak.

The expenditures made at the end of 2017 also put significant pressure on the economy.


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