Liberia is set to restart its ore mines in 2011 after the easing of political instability in the country, the International Monetary Fund (IMF) has said in a report on Liberia.
According to the report, growth is to be boosted through positive spillover effects on other sectors as iron ore production restarts in the country. Meanwhile, tax revenues from the two largest iron ore projects that are projected to start in 2011-12 are expected to reach about $260 million by 2014, accounting for 17 percent of the country's GDP.
The country is expected to grow 7.5 percent in 2010 and in two-digit numbers from 2011 until 2013. Although the medium-term prospects for Liberia remain favorable, the economy is heavily dependent on the restart of iron ore production in 2011 and on continued political stability. Accordingly, delays in iron ore investments are seen as constituting a financial risk for Liberia, the report concludes.