The economy of Liberia is extremely underdeveloped, with only $3.222 billion by gross domestic product as of 2019, largely due to the First (1989–1996) and Second Liberian Civil War (1999–2003).

Liberia is richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, but poor in human capital, infrastructure, and stability.

The majority of the population is reliant on subsistence agriculture, while exports are dominated by raw commodities such as rubber and iron ore. Local manufacturing, such as it exists, is mainly foreign-owned.

The democratically elected government, installed in August 1997, inherited massive international debts and currently relies on revenues from its maritime registry to provide the bulk of its foreign exchange earnings.

The restoration of the infrastructure and the raising of incomes in this ravaged economy depend on the implementation of sound macro- and microeconomic policies of the new government, including the encouragement of foreign investment.

[13] It rose to approximately $500 by the time of independence, but the economy subsequently stagnated until the 1930s when a period of rapid economic growth began.

[14] Firestone developed an inordinate sway over the Liberian government, effectively acquiring control over its finances in the subsequent period.

[16] Economic historian George Dalton estimated in 1965 that Liberia received more aid per capita from the United States than any other African country.

[17] In the post-WWII period, Liberia tried to become a destination for offshore services, as the country loosened laws related to ship registration, corporation, and taxes.

Since the coup d'état of 1980, the country's economic growth rate has slowed down because of a decline in the demand for iron ore on the world market and political upheavals in Liberia.

In recent years (2005 - 2012), foreign investment from ArcelorMittal Steel, BHP Biliton, and China Union is aiding the revitalization of the iron-ore mining sector.

[30] Liberia maintains an open maritime registry, meaning that owners of ships can register their vessels as Liberian with relatively few restrictions.

Liberia has the second-largest maritime registry in the world behind Panama, with 4,300 vessels registered under its flag accounting for 12% of ships worldwide.

Liberia has relied heavily on vast amounts of foreign assistance, particularly from the United States, Sweden, Britain, France, Italy, Germany, the People's Republic of China, and Romania.

With Guinea and Sierra Leone, it formed the Mano River Union (MRU) for development and the promotion of regional economic integration.