Given the unusual relationship between inflation and economic growth, Liberian president, George Weah has decided to combat the rising inflation in the country by reducing import taxes on more than 2,000 commodities.
According to a statement from the Ministry of Information, the decision will see to the reduction of taxes on many goods imported into the Liberian market.
Over the year, the Liberian economy has experienced a major devastation in all sectors because of its 15-year civil war. The Liberian government’s Poverty Reduction Strategies primary objective has been to revamp the economy, thereby stimulating saving, investment, employment, reduction of poverty and inflation and above all achieving economic growth. Weah, which was elected in December 2017 on a “pro-poor” program has decided to take the bull by the horn starting with a reduced import tax rate.
As at February, inflation rate in the country was recorded at 17.80 percent. Liberia’s inflation rate averaged 8.32 percent from 1968 until 2018, reaching an all-time high of 26.54 percent in August of 2008 and a record low of -5.69 percent in December of 1971.
Trade economics global macro models and analysts’ expectations projected that the inflation Rate in Liberia is expected to be 10.20 percent by the end of the first quarter of this year. Meanwhile, the one-year inflation Rate in Liberia is estimated at 9.10 percent.
The President instructed the Ministry of Trade and Industry to urgently implement a consistent and proportionate reduction in the prices of the products concerned in order to bring relief to the poor, reducing customs taxes from 81 percent to 40 percent on more than 2,000 products widely consumed by Liberians.