The 1989-2003 civil war had a devastating effect on the country's economy. Most major businesses were destroyed or heavily damaged, and most foreign investors and businesses left the country. Iron ore production has stopped completely, and Liberia cannot profit from timber and diamond exports due to UN sanctions. Its few earnings come primarily from rubber exports and revenues from its maritime registry program.

As the second-largest maritime licenser in the world--with more than 1,800 vessels registered under its flag, including 35% of the world's tanker fleet--Liberia earns some $14 million annually from the flag registry. There is increasing interest in the possibility of commercially exploitable offshore crude oil deposits along Liberia's Atlantic Coast.

Liberia's business sector is largely controlled by foreigners, mainly of Lebanese and Indian descent. There also are limited numbers of Chinese engaged in agriculture. There also are significant numbers of West Africans engaged in cross-border trade.

Liberia is a member of ECOWAS. With Guinea and Sierra Leone, it formed the Mano River Union (MRU) for development and the promotion of regional economic integration. The MRU became all but defunct because of the Liberian civil war, which spilled over into neighboring Sierra Leone and Guinea. There was some revival of MRU political and security cooperation discussions in 2002.

With a new, democratically elected government in place since January 2006, Liberia seeks to reconstruct its shattered economy. The Governance and Economic Management Program (GEMAP), which started under the 2003-2006 transitional government, is designed to help the Liberian Government raise and spend revenues in an efficient, transparent way. Success under GEMAP and solid economic performance should result in Liberia being able to attract investment and begin rebuilding its economy.