Liberia Ranks 8th In World’s Worst Economies

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.