Liberia is ranked eighth place amongst the world worst economies, with Ghana at first place, Burundi six, Zimbabwe bottom and Nicaragua, the only Latin American country at 5th place, a new survey has revealed.
The study confirms Liberia as a resource-rich country that has mismanaged its way to poverty through decades of corruption and civil war. The report: In eighth place is Liberia, another resource-rich nation that has mismanaged its way to poverty through decades of corruption and civil war.
The country has been relatively stable since 2005 and may achieve 6% GDP growth this year. But that’s a GDP of less than $900 million, with rubber exports the single largest source of foreign currency at $170 million.
Registrations of foreign ships brings in another $18 million, hardly enough to make a dent in the country’s $3.4 billion debt. Last year commercial creditors agreed to call it even at 3 cents on the dollar, possibly allowing Liberia to begin the cycle of borrowing and defaulting anew.
Some economic growth is expected after Arcelor Mittal (MT – news – people) begins shipping iron ore from the Yekapi complex in 2011.