Liberia: Trade Profile
Liberia has an open economy and is very favourable to trade, which represents 127% of the country's GDP (World Bank, latest data). Custom duties are not too high, ranging from 2.5% to 25%. However, there are still certain difficulties in the development of trade, such as the requirement of a certificate of inspection before shipment, a limited access to private credit and purchasing power as well as a lack of infrastructure. In 2016, Liberia finally joined the World Trade Organisation (WTO), which is expected to lead to a standardisation of the country’s trade and investment laws and regulations, in line with internationally acceptable norms. The country also signed the African Continental Free Trade Agreement, and is a member of the Economic Community of West African States (ECOWAS). Liberia mainly exports iron ores, gold, ships, rubber, cocoa, fats, wood and mineral fuels. The country mainly imports ships, commodities, mineral fuels, machinery, iron and cereals (ITC, 2020)
Liberia's main trading partners are France, Germany, Switzerland and Liechtenstein, Turkey and China (UNCTAD, 2020). Demand for Liberia’s commodity exports could be reduced by a slowdown in the advanced economies or in China, due to recent trade tensions.
The country's trade balance is structurally negative, but the trade deficit has tended to decrease in recent years, in particular due to the decline in imports induced by the sharp downward trend of the Liberian dollar against the US dollar. The trade deficit is partially offset by remittances from Liberian expatriates. In 2020, Liberia imported USD 1.10 billion worth of goods and exported USD 608 million. Imports of services amounted to USD 224 million, while exports reached USD 10 million (WTO). Exports are expected to increase due to gold production and the recovery in commodity prices. In 2022, trade deficit is expected to remain at the same level, as high prices of agricultural and mining products will be offset by higher prices of imported goods including oil (Coface).
| Foreign Trade Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 1,311 | 1,089 | 1,143 | 869 | 1,102 |
| Exports of Goods (million USD) | 170 | 358 | 548 | 543 | 608 |
| Imports of Services (million USD) | 656 | 217 | 200 | 217 | 224 |
| Exports of Services (million USD) | 183 | 21 | 10 | 11 | 10 |
| Imports of Goods and Services (Annual % Change) | -1 | -0 | -8 | 0 | -7 |
| Exports of Goods and Services (Annual % Change) | 6 | 6 | 1 | 1 | -10 |
| Trade Balance (million USD) | -922 | -630 | -524 | -391 | n/a |
| Foreign Trade (in % of GDP) | 122 | 123 | 120 | 127 | 123 |
| Imports of Goods and Services (in % of GDP) | 100 | 99 | 94 | 99 | 95 |
| Exports of Goods and Services (in % of GDP) | 21 | 24 | 26 | 29 | 29 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
To go further, check out our service Import Export Flows
| 0.0 bn USD of services exported in 2018 | |
|---|---|
| 96.32% | |
| 3.68% | |
| 0.2 bn USD of services imported in 2018 | |
|---|---|
| 48.48% | |
| 36.27% | |
| 8.69% | |
| 4.22% | |
| Business travelBusiness travel | 4.22% |
| 2.33% | |
Source: United Nations Statistics Division, Latest Available Data
Member of Economic Community of West African States (ECOWAS)
Member of Economic Community of West African States (ECOWAS)
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Latest Update: May 2022
