Liberia’s economy will probably expand at a faster pace this year than in 2011 as the West African nation devastated by a 14 year civil war restarts its iron ore industry.

President Ellen Johnson-Sirleaf in a speech said that gross domestic product may expand about 9% after rising 7% last year. She added that inflation will probably slow to 4% to 5% from an average 7.5% last year.

Ms Johnson-Sirleaf said that “In the midst of a looming global recession, this is no small achievement. A growing economy and declining inflation mean that our people have more money to spend and the value of this money is retained.”

The West African nation has lured more than USD 16 billion in investments since Johnson-Sirleaf became president in 2005 as ArcelorMittal, OAO Severstal and Chevron Corp invested in the mining, rubber and oil industries. ArcelorMittal shipped the first iron ore from its operations in the country in September.

Government revenue is forecast to increase 32% to USD 516 million in the 2011-2012 fiscal year, while spending jumped by 39% to USD 385.7 million in the period from January 1 last year to December 9. Foreign reserves rose to USD 327.1 million at the end of December from USD 288.1 million the year earlier.

(Sourced from Bloomberg)