Libya flag Libya: Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Libya's economy is almost entirely dependent on oil and gas exports. In 2021, the country made significant progress towards institutional, political, economic, financial and military reunification in 2021, which resulted in a strong rebound of oil production. As such, the GDP grew by an estimated 123.2% of GDP in 2021, amid a strong recovery in oil prices and domestic oil output. That staggering growth, however, is expected to slow down and give way to a more moderate growth rate of 5.3% in 2022 and 5.5% in 2023.

Libyan oil and gas production accounts for nearly 60% of aggregate economic output and more than 90% of fiscal and export revenues. In 2021, oil activity in the country resumed, following the 2020 blockade on oilfields imposed by  military commander Khalifa Haftar, which were lifted in December of that same year. With that, a notable recovery was recorded both in the oil sector and the country's oil-dependent economy, with the current account going from a deficit of USD 2.35 billion in 2020 to a surplus of USD 5.25 billion in 2021. However, the country's inflation rate significantly increased over the same period, reaching 21.1% in 2021. Nevertheless, inflation should decrease to a more moderate rate in 2022, at around 8%, and 2023, when it is expected to reach 6.5%. Although Libya continued implementing policy responses to mitigate the impact of the COVID-19 pandemic in 2021, the country still faced a civil war and a divided government.

Continued inflation and low oil production exacerbated poverty in a country already ravaged by civil war and repeated terrorist attacks. The Tripoli government has implemented an active policy of job creation, especially in the public sector, but, according to Ministry of Labor, unemployment rate reaches 20%, and about half of all young people and a quarter of women remain without employment.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 39.50e19.21e27.3029.2029.99
GDP (Constant Prices, Annual % Change) 13.2e-59.7e123.25.35.5
GDP per Capita (USD) 6,004e2,891e4,0694,3094,382
General Government Gross Debt (in % of GDP) 0.00.00.00.00.0
Inflation Rate (%) 0.22.8e3.73.72.4
Current Account (billions USD) 0.43e-2.35e5.254.494.47
Current Account (in % of GDP) 1.1e-12.2e19.215.414.9

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Lybian Dinar (LYD) - Average Annual Exchange Rate For 1 GBP 1.881.791.821.751.79

Source: World Bank, 2015

 

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Latest Update: July 2022

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