Liberia’s public debt has climbed once again, according to the Central Bank of Liberia’s (CBL) latest economic and financial update for September 2025.
Although the increase is marginal, the overall debt burden remains troubling, raising concerns about the nation’s long-term fiscal stability.
Public Debt Rises to US$2.68 Billion
CBL data show that the country’s total public debt stock rose by 0.1 percent-from US$2,685.2 million to US$2,687.7 million-representing 52.4 percent of Gross Domestic Product (GDP).
This slight uptick is driven mainly by growth in external debt, which continues to exceed domestic borrowing.
Domestic Debt: US$1,063.37 million (20.8% of GDP)
External Debt: US$1,624.36 million (31.7% of GDP)
The report warns that even minimal increases in external debt place added pressure on government revenues and foreign exchange reserves.
Alongside the debt update, the CBL reported mixed production trends across the mining, agriculture, and manufacturing sectors for August 2025.
Mining Sector
Iron Ore:
Production increased by 4.4 percent, rising to 1.61 million metric tons in August from 1.54 million metric tons in July. The continued growth is attributed to strong external demand, higher global prices, and expanded capacity at one of the country’s major mines. Year-on-year, iron ore output jumped by 1.16 million metric tons compared to August 2024.
Gold:
Gold output fell sharply by 14.1 percent-from 58,877 ounces in July to 50,586 ounces in August-due to reduced artisanal mining activities driven by seasonal and operational constraints. Despite the monthly dip, production rose by 35.4 percent compared to August last year.
Diamonds:
The production of diamond dipped slightly by 1.3 percent, decreasing from 3,904 carats in July to 3,853 carats in August of this year.
According to the report, the decline is linked to lower global natural diamond prices and ongoing regulatory efforts to curb illegal mining and trade. However, year-on-year output increased by 2,566 carats, signaling continued recovery from 2024 levels.
Agriculture Sector
Rubber:
Rubber production fell significantly by 35.4 percent, dropping to 5,048 metric tons in August from 7,819 metric tons in July, mainly due to reduced output from smallholder farmers. Still, year-on-year production improved by 9.3 percent compared to August 2024.
Manufacturing Sector
Cement:
The CBL report, among other things noted that the production of cement rose by 10.3 percent-from 36,949 metric tons in July to 40,751 metric tons in August, as manufacturers stockpiled supplies during the rainy season in anticipation of higher dry-season demand.
However, the output remains 37.4 percent lower than in August 2024, reflecting ongoing challenges within the construction and manufacturing industries.
Economic Outlook
The latest CBL report underscores an economy marked by both progress and persistent vulnerabilities.
According to the report, strength in iron ore production and year-on-year gains in gold and diamonds contrast with declines in rubber output and ongoing volatility in manufacturing.
Meanwhile, the slight raise in public debt-now approaching US$2.7 billion-highlights the urgent need for prudent fiscal management.
With global financial conditions tightening and domestic revenues under strain, economists caution that Liberia’s debt profile could worsen unless the country reduces its reliance on external borrowing and strengthens local production capacity.
