Years of civil strife have destroyed much of Liberia's economic infrastructure, made civil administration nearly impossible, and brought economic activity virtually to a halt. The deterioration of economic conditions has been greatly exacerbated by the flight of most business people with their expertise and capital. Civil order ended in 1990 when President Samuel Kanyon DOE was killed by rebel forces. The ensuing civil war persisted until August 1995 when the major factions signed the Abuja peace accord and, in September 1995, formed a transitional coalition government under Wilton SANKAWULO. The war was resumed in April 1996, when forces loyal to faction leaders Charles TAYLOR and Alhaji KROMAH attacked rival factions in Monrovia, further damaging the capital's already dilapidated infrastructure and causing panic among the remaining foreign residents, thousands of whom sought refuge in US facilities. Prospects for peace became extremely uncertain again.
Economy
Economic overview:
Civil war since 1990 has destroyed much of Liberia's economy, especially the infrastructure in and around Monrovia. Businessmen have fled the country, taking capital and expertise with them. Many will not return. Richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products, while local manufacturing, mainly foreign owned, had been small in scope. Political instability threatens prospects for economic reconstruction and repatriation of some 750,000 Liberian refugees who have fled to neighboring countries. The continued political turmoil has prevented restoration of normal economic life, including the re-establishment of a strong central government with effective economic development programs. The economy deteriorated further in 1995.
GDP:
purchasing power parity - $2.3 billion (1994 est.)
GDP real growth rate:
0% (1994 est.)
GDP per capita:
$770 (1994 est.)
GDP composition by sector:
agriculture:
NA%
industry:
NA%
services:
NA%
Inflation rate (consumer prices):
50% (1994 est.)
Labor force:
510,000 including 220,000 in the monetary economy
by occupation:
agriculture 70.5%, services 10.8%, industry and commerce 4.5%, other 14.2%
note:
non-African foreigners hold about 95% of the top-level management and engineering jobs
Unemployment rate:
NA%
Budget:
revenues:
$225 million
expenditures:
$285 million, including capital expenditures of $NA (1994 est.)
Industries:
rubber processing, food processing, construction materials, furniture, palm oil processing, iron ore, diamonds
Industrial production growth rate:
NA% (1993-94)
Electricity:
capacity:
330,000 kW
production:
440 million kWh
consumption per capita:
143 kWh (1993)
Agriculture:
rubber, coffee, cocoa, rice, cassava (tapioca), palm oil, sugarcane, bananas; sheep, goats; timber
Illicit drugs:
increasingly a transshipment point for heroin and cocaine
Exports:
$530 million (f.o.b., 1994 est.)
commodities:
iron ore 61%, rubber 20%, timber 11%, coffee
partners:
US, EC, Netherlands, Singapore
Imports:
NA (c.i.f., 1994 est.)
commodities:
mineral fuels, chemicals, machinery, transportation equipment, manufactured goods; rice and other foodstuffs
partners:
US, EC, Japan, China, Netherlands, ECOWAS, South Korea
External debt:
$1.9 billion (1993 est.)
Economic aid:
recipient:
ODA, $NA
Currency:
1 Liberian dollar (L$) = 100 cents
Exchange rates:
Liberian dollars (L$) per US$1 - 1.0000 (officially fixed rate since 1940); market exchange rate of US$1 - L$50 (October 1995), L$7 (January 1992), market rate floats against the US dollar
Fiscal year:
calendar year
