Economy Of Libya

These oil revenues and a small population have given Libya one of the highest nominal per capita GDP in Africa.

Economy of Libya

Tripoli, financial capital of Libya
Currency	Libyan dinar (LYD, ل.د)
Fiscal year	calendar year
Trade organisations	OPEC, COMESA, CEN-SAD, AMU
Country group	Developing/Emerging Upper-middle income economy
Statistics
Population	6,888,388 (2023)
GDP	$45.75 billion (nominal, 2023 est.) $273.7 billion (PPP, 2024 est.)
GDP rank	93rd (nominal, 2023) 75th (PPP, 2023)
GDP growth	26.7% (2017) 7.9% (2018e) 5.5% (2019f) −58.7% (2020f) +170% (2021)
GDP per capita	$6,716 (nominal, 2023 est.) $36,662 (PPP, 2023 est.)
GDP per capita rank	103rd (nominal, 2023) 71st (PPP, 2023)
GDP by sector	agriculture 1.3% industry 63.8% services 34.9% (2017 est.)
Inflation (CPI)	3.4% (2023)
Population below poverty line	NA% about one-third of Libyans live at or below the national poverty line
Gini coefficient	N/A
Human Development Index	0.718 high (2022)
Labour force	2,553,671 (2019) 38.7% employment rate (2012)
Labour force by occupation	agriculture: 17% industry: 23% services: 59% (2004)
Unemployment	30% (2004 est.)
Main industries	petroleum, steel, iron, food processing, textiles, cement
External
Exports	$18.38 billion (2017 est.)
Export goods	crude oil, refined petroleum products, natural gas, chemicals
Main export partners	Italy 24.2%  Germany 10.6%  Spain 9.9%  China 9.22%  France 6.29%  United States 6.25%  Greece 5.95%  Netherlands 4.84%  United Kingdom 4.45%  Thailand 3.25% (2021)
Imports	$11.36 billion (2017 est.)
Import goods	machinery, transport equipment, semi-finished goods, food, consumer products
Main import partners	Turkey 15.1%  Greece 13%  China 11.6%  United Arab Emirates 9.33%  Italy 7.83%  Egypt 4.19%  Germany 3.73%  Tunisia 3.53%  Netherlands 2.92%  South Korea 2.34% (2021)
FDI stock	$20.21 billion (31 December 2017 est.) Abroad: $20.97 billion (31 December 2017 est.)
Current account	$2.574 billion (2017 est.)
Gross external debt	$3.02 billion (31 December 2017 est.)
Public finances
Government debt	4.7% of GDP (2017 est.)
Budget balance	−25.1% (of GDP) (2017 est.)
Revenues	13.47 billion (2022 est.)
Expenses	30.61 billion (2022 est.)
Economic aid	recipient ODA $9 million (2010), $642 million (2011), $87 million (2012)
Foreign reserves	$74.71 billion (31 December 2017 est.)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

After 2000, Libya recorded favorable growth rates with an estimated 10.6% growth of GDP in 2010. This development was interrupted by the Libyan Civil War, which resulted in contraction of the economy by 62.1% in 2011. After the war, the economy rebounded by 104.5% in 2012. It crashed again following the Second Libyan Civil War. As of 2017, Libya's per capita PPP GDP stands at 60% of its pre-war level.

Libyan GDP per capita was about $40 in the early 1920s and it rose to $1,018 by 1967. In 1947 alone, per capita GDP rose by 42 percent.

The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is in green. The annual unemployment rate is extracted from the World Bank, although the International Monetary Fund find them unreliable.

Year	GDP (in Bil. US$PPP)	GDP per capita (in US$ PPP)	GDP (in Bil. US$nominal)	GDP per capita (in US$ nominal)	GDP growth (real)	Inflation rate (in Percent)	Unemployment (in Percent)	Government debt (in % of GDP)
1980	97.8	32,745.5	40.2	13,449.6	0.6%	14.3%	n/a	n/a
1981	85.6	27,398.5	34.7	11,107.6	-20.0%	13.2%	n/a	n/a
1982	92.3	28,202.7	34.6	10,575.6	1.5%	13.8%	n/a	n/a
1983	91.4	26,800.2	33.0	9,671.5	-4.7%	10.5%	n/a	n/a
1984	86.8	24,406.1	30.9	8,681.2	-8.3%	12.4%	n/a	n/a
1985	90.1	25,471.4	30.4	8,586.4	0.6%	9.1%	n/a	n/a
1986	81.5	22,172.1	24.8	6,734.0	-11.4%	3.4%	n/a	n/a
1987	71.2	18,585.1	23.0	6,002.1	-14.7%	4.4%	n/a	n/a
1988	79.3	18,346.5	25.9	5,981.6	7.6%	3.1%	n/a	n/a
1989	88.4	19,550.0	27.4	6,070.1	7.2%	4.5%	n/a	n/a
1990	95.1	22,327.7	31.6	7,424.2	3.7%	0.7%	n/a	4.7%
1991	116.3	26,685.3	35.0	8,026.3	18.3%	11.7%	19.8%	9.6%
1992	113.6	25,468.7	35.5	7,950.5	-4.5%	9.5%	20.0%	1.2%
1993	109.9	24,106.1	31.9	6,998.3	-5.5%	7.5%	20.0%	-4.6%
1994	115.9	24,921.7	29.7	6,391.1	3.2%	10.7%	19.9%	-1.6%
1995	100.1	21,064.9	33.7	7,102.9	-15.4%	8.3%	20.0%	4.8%
1996	103.7	21,422.2	36.8	7,608.8	1.8%	4.0%	19.8%	12.2%
1997	102.7	20,872.4	37.7	7,663.0	-2.6%	3.6%	19.8%	-1.3%
1998	103.1	20,587.9	30.9	6,171.8	-0.7%	3.7%	19.8%	-1.5%
1999	104.4	20,511.0	37.1	7,294.5	-0.2%	2.6%	19.7%	6.4%
2000	111.1	21,444.4	39.5	7,625.0	4.0%	-2.9%	19.7%	13.6%
2001	116.6	22,161.2	35.2	6,693.1	2.6%	-8.8%	19.7%	0.4%
2002	114.0	21,343.2	21.1	3,956.5	-3.7%	-9.9%	19.6%	7.0%
2003	135.0	24,905.2	27.0	4,986.3	16.1%	-2.1%	19.5%	6.2%
2004	146.7	26,626.3	34.1	6,180.4	5.8%	1.3%	19.5%	11.3%
2005	167.4	29,942.7	48.9	8,739.2	10.6%	2.7%	19.4%	30.4%
2006	173.0	30,408.6	60.1	10,561.4	0.3%	1.5%	19.4%	29.1%
2007	188.8	32,659.5	68.2	11,801.3	6.2%	6.2%	19.4%	28.4%
2008	192.1	32,666.6	86.8	14,762.6	-0.2%	10.4%	19.4%	27.7%
2009	184.8	31,007.5	60.8	10,202.8	-4.4%	2.4%	19.4%	-5.5%
2010	196.4	32,515.4	75.4	12,478.0	5.0%	2.5%	19.3%	11.5%
2011	99.6	16,810.9	48.2	8,132.3	-50.3%	15.9%	19.4%	-11.5%
2012	172.5	27,458.8	92.5	14,728.1	86.8%	6.1%	19.0%	24.6%
2013	144.5	23,054.5	75.4	12,025.6	-18.0%	2.6%	19.5%	-16.3%
2014	126.9	20,273.6	57.4	9,166.6	-23.0%	2.4%	19.5%	-30.5%
2015	137.2	21,709.9	48.7	7,706.7	-0.8%	10.0%	19.5%	-28.5%
2016	137.4	21,520.7	49.9	7,817.6	-1.5%	25.9%	19.5%	-29.3%
2017	154.4	23,949.3	67.2	10,414.1	32.5%	25.9%	19.4%	-11.1%
2018	170.7	26,207.0	76.7	11,773.8	7.9%	14.0%	19.5%	9.4%
2019	154.3	23,454.9	69.2	10,526.3	-11.2%	-2.9%	19.7%	11.9%
2020	110.1	16,575.1	46.9	7,056.7	-29.5%	1.5%	20.1%	-22.3%
2021	147.1	21,929.0	39.0	5,813.3	28.3%	2.8%	19.6%	11.3%
2022	128.4	18,944.7	40.8	6,025.7	-18.5%	5.5%	n/a	15.8%
2023	156.7	22,899.5	43.8	6,391.8	17.9%	4.0%	n/a	22.1%
2024	172.8	24,997.2	45.6	6,599.0	8.0%	3.0%	n/a	18.8%
2025	188.8	27,034.7	47.7	6,836.3	7.2%	3.0%	n/a	16.5%
2026	200.5	28,434.6	49.1	6,964.6	4.2%	3.0%	n/a	13.5%
2027	212.8	29,874.1	50.5	7,096.0	4.1%	3.1%	n/a	9.7%

Notes:
1. For purchasing power parity comparisons, the US Dollar is exchanged at 0.77 Libyan Dinars only.

Mean wages were $9.51 per man-hour in 2009 (amounts to a compensation of $1598 for 21 working days of 8 hours).

 

Libya is an OPEC member and holds the largest proven oil reserves in Africa (followed by Nigeria and Algeria), 41.5 Gbbl (6.60×10⁹ m³) as of January 2007, up from 39.1 Gbbl (6.22×10⁹ m³) in 2006. About 80% of Libya's proven oil reserves are located in the Sirte Basin, which is responsible for 90% of the country's oil output. The state-owned National Oil Corporation (NOC) dominates Libya's oil industry, along with smaller subsidiaries, which combined account for around 50% of the country's oil output. Among NOC's subsidiaries, the largest oil producer is the Waha Oil Company (WOC), followed by the Agoco, Zueitina Oil Company (ZOC), and Sirte Oil Company (SOC). Oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and over 50% of GDP. Oil revenues constitute the principal foreign exchange source. Reflecting the heritage of the command economy, three-quarters of employment is in the public sector, and private investment remains small at around 2% of GDP.

 

Falling world oil prices in the early 1980s and economic sanctions caused a serious decline in economic activity, eventually leading to a slow private sector rehabilitation. At 2.6% per year on average, real GDP growth was modest and volatile during the 1990s. Libya's GDP grew in 2001 due to high oil prices, the end of a long cyclical drought, and increased foreign direct investment following the suspension of UN sanctions in 1999. Real GDP growth has been boosted by high oil revenues, reaching 4.6% in 2004 and 3.5% in 2005. Despite efforts to diversify the economy and encourage private sector participation, extensive controls of prices, credit, trade, and foreign exchange constrain growth.

Although UN sanctions were suspended in 1999, foreign investment in the Libyan gas and oil sectors were severely curtailed due to the U.S. Iran and Libya Sanctions Act (ILSA), which capped the amount foreign companies can invest in Libya yearly at $20 million (lowered from $40 million in 2001). As of May 2006, the U.S. has removed Libya from its list of states that sponsor terrorism and has normalised ties and removed sanctions. This clears the road for U.S. oil companies to exploit Libyan oil and is expected to have a positive impact on the Libyan economy. [1]

The NOC hopes to raise oil production from 1.80 million bpd in 2006 to 2 million bpd by 2008. FDI into the oil sector is likely, which is attractive due to its low cost of oil recovery, high oil quality, and proximity to European markets. Most Libyan oil is sold on a term basis, including to the country's Oilinvest marketing network in Europe; to companies like Agip, OMV, Repsol YPF, Tupras, CEPSA, and Total; and small volumes to Asian and South African companies.

Notes:
1. Energy Information Administration (2007)

Field Development and Exploration

 

In November 2005, Repsol YPF discovered a significant oil deposit of light, sweet crude in the Murzuq Basin. Industry experts believe the discovery to be one of the biggest made in Libya for several years. Repsol YPF is joined by a consortium of partners including OMV, Total and Norsk Hydro. Also located in Murzuq Basin is Eni's Elephant field. In October 1997, a consortium led by British company Lasmo, along with Eni and a group of five South Korean companies, announced that it had discovered large recoverable crude reserves about 800 kilometres (500 mi) south of Tripoli. Lasmo estimated field production would cost around $1 per barrel. Elephant began production in February 2004.

WOC's Waha fields currently produce around 350,000 bbl/d (56,000 m³/d). In 2005, ConocoPhillips and co-venturers reached an agreement with NOC to return to its operations in Libya and extend the Waha concession 25 years. ConocoPhillips operates the Waha fields with a 16.33% share in the project. NOC has the largest share of the Waha concession, and additional partners include Marathon and Amerada Hess.

Refining and Downstream

Libya has five domestic refineries:

Notes:
1. Amounts in barrels per day.

 

 

In 2007, mining and hydrocarbon industries accounted for well over 95 percent of the Libyan economy.^{[citation needed]} Diversification of the economy into manufacturing industries remain a long-term issue.

Although agriculture is the second-largest sector in the economy, Libya depends on imports in most foods. Climatic conditions and poor soils severely limit farm output, and domestic food production meets only about 25% of demand. Domestic conditions limit output, while higher incomes and a growing population have caused food consumption to rise. Because of low rainfall levels in Libya, agricultural projects such as the Kufra oasis rely on underground water sources. Libya's primary agricultural water source remains the Great Manmade River (GMMR), but significant resources are being invested in desalinization research to meet growing demand. Libyan agricultural projects and policies are overseen by a General Inspector; there is no Ministry of Agriculture, per se.

Libya produced in 2018:

• 348 thousand tons of potato;
• 236 thousand tons of watermelon;
• 215 thousand tons of tomato;
• 188 thousand tons of olive;
• 183 thousand tons of onion;
• 176 thousand tons of date;
• 138 thousand tons of wheat;
• 93 thousand tons of barley;
• 72 thousand tons of vegetable;
• 60 thousand tons of plum;
• 53 thousand tons of orange;

In addition to smaller productions of other agricultural products.

The tourism industry was heavily hit by the Libyan Civil War. Before the war tourism was developing, with 149,000 tourists visiting Libya in 2004, rising to 180,000 in 2007, although this still only contributed less than 1% of the country's GDP. There were 1,000,000 day visitors in the same year. The country is best known for its ancient Greek and Roman ruins and Sahara desert landscapes.

Libya posted a 3.3% rate of population growth during 1960–2003. In 2003, 86% of the population was urban, compared to 45% in 1970. Although no reliable estimates are available, unemployment is reportedly acute: over 50% of the population under the age of 20. Moreover, despite the bias of labor market regulations favoring Libyan workers, the mismatch of the educational system with market demand has produced a large pool of expatriate workers, with typically better-suited education and higher productivity. However, because of shortages for manual labor, Libya has also attracted important numbers of less skilled immigrants. Expatriate workers represent an estimated fifth of the labor force.

Although significant, the proportion of expatriate workers is still below oil producing countries in the Persian Gulf. Foreign workers mainly come from the Maghreb, Egypt, Turkey, India, the Philippines, Malaysia, Thailand, Vietnam, Poland, Chad, Sudan, and Bosnia and Herzegovina. They tend to earn relatively high wages, taking either skilled or hard manual jobs. Census data for 2000 show the share of expatriates earning over LD 300 (US$230) per month was 20%, compared to 12% for Libyan nationals. A campaign encouraging conversion of qualified civil servants to entrepreneurs, in the face of public sector over employment and declining productivity, does not seem to be producing the desired results thus far.

 

The Government is in the process of preparing a financial sector reform program. Recent legislation setting corporate governance standards for financial institutions makes progress towards better management and greater operational independence of public banks. However, Libyan public banks still lack management structures supported by skills in critical areas like credit, investment, risk management, and information and control systems.

The new banking law reinforces the independence of the Central Bank of Libya (CBL) and offers a legal framework for regulating banking activities, even if some provisions call for improvement. Despite progress brought by the new banking Law that specifies and limits its duties and responsibilities, the CBL remains the owner of the public banks, with the associated potential conflict of interest between ownership and regulation.

Financial sector reform has also progressed with partial interest rate liberalization. Interest rates have been liberalized on deposits, while a lending rate ceiling has been set above the discount rate. The Libyan Stock Exchange, established in 2007, is the first exchange of its kind in the country.

In 2011, Libya Oil Holdings had its €38m stake in Irish exploration firm Circle Oil frozen on foot of a European Union order that's been put in place to put pressure on the Gaddafi regime.

Two trans-African automobile routes pass through Libya:

• Cairo-Dakar Highway
• Tripoli-Cape Town Highway

Household income or consumption by percentage share:
lowest 11%: NA%
highest 10%: NA%

Industrial production growth rate: 2.7% (2009)

Electricity - production: 24 billion kWh (2007 est)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 22.17 billion kWh (2007 est)

Electricity - exports: 104 million kWh (2007)

Electricity - imports: 77 million kWh (2007)

Agriculture - products: wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans, cattle, corn