Libya
Thursday, 21st November 2019

Libya Country Profile

 

2012 INVESTMENT CLIMATE STATEMENT - LIBYA


 

SUMMARY

A robust economic recovery is under way in Libya following the 2011 civil war. Since formation of the National Transitional Council, which served as the de facto interim government until elections were held in July, 2012, a number of countries have established full-time commercial sections, including Great Britain and France. Major sectors of economic activity continue to be within construction, power generation, water supply, consumer goods and medical and pharmaceutical supplies.

Following the end of the civil war, imports rose sharply after a steep contraction of the economy in 2011. The trend is expected to continue with year-over-year gains in GDP through to 2017. The chart below summarizes projected growth over the following five year period.

Emerging Market and Developing Economies: Real GDP1

 

Average 1994-2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2017

Libya

0.4

4.5

11.9

6.5

6.4

2.4

1.4

3.7

59.7

121.9

16.7

3.9

Source: IMF World Economic Outlook, October 2012, Table A4, p. 195

1. Shaded areas are IMF estimates.

 


Economy

The Libyan economy depends primarily upon revenue from hydrocarbons, which contribute about 95% of export earnings, 65% of GDP, and 80% of government revenue. Substantial revenue from the energy sector coupled with a small population give Libya one of the highest per capita GDPs in Africa, but little of this income flowed to the lower orders of society. Libya in the past five years made progress on economic reform as part of a broader campaign to reintegrate the country into the international fold. This effort picked up steam after UN sanctions were lifted in September 2003 and after Libya announced in December 2003 that it would abandon programs to build weapons of mass destruction. The process of lifting US unilateral sanctions began in the spring of 2004; all sanctions were removed by June 2006, helping Libya attract greater foreign direct investment, especially in the energy sector. Libyan oil and gas licensing rounds drew high international interest, but new rounds are unlikely until Libya establishes a more permanent government. The National Oil Corporation (NOC) set a goal of nearly doubling oil production to 3 million bbl/day by 2012, but the goal is unlikely to be met by the target date. Libya faces a long road ahead in liberalizing its primarily socialist economy, but the revolution probably increases the opportunity for entrepreneurial activity and the evolution of a more market-based economy.

The service and construction sectors, which account for roughly 20% of GDP, expanded over the past five years and could become a larger share of GDP after political volatility subsides. Climatic conditions and poor soils severely limit agricultural output, and Libya imports about 75% of its food. Libya's primary agricultural water source remains the Great Manmade River Project, but significant resources will be needed in desalinization to meet growing water demands.

 Source: CIA World Factbook

 

GDP (purchasing power parity)

$NA (2011 est.)
$92.62 billion (2010 est.)
$88.94 billion (2009 est.)
note: data are in 2011 US dollars

GDP - per capita (PPP)

$14,100 (2010 est.)
$13,800 (2009 est.)
note: data are in 2011 US dollars

GDP - composition by sector

agriculture: 3.2%
industry: 49.5%
services: 47.3% (2011 est.)

Population below poverty line

NA
note: About one-third of Libyans live at or below the national poverty line

Labor force

1.16 million (2011 est.)

Labor force - by occupation

agriculture: 17%
industry: 23%
services: 59% (2004 est.)

Unemployment rate

30% (2004 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Investment (gross fixed)

2.8% of GDP (2011 est.)

Budget

revenues: $18.15 billion
expenditures: $32 billion (2011 est.)

Taxes and other revenues

NA% of GDP (2011 est.)

Budget surplus (+) or deficit (-)

NA% of GDP (2011 est.)

Public debt

4.7% of GDP (2011 est.)
3.5% of GDP (2010 est.)

Inflation rate (consumer prices)

6.1% (2011 est.)
2.5% (2010 est.)

Central bank discount rate

9.52% (31 December 2010 est.)
3% (31 December 2009 est.)

Commercial bank prime lending rate

6% (31 December 2011 est.)
6% (31 December 2010 est.)

Stock of money

$26.66 billion (31 December 2008)
$18.04 billion (31 December 2007)

Stock of narrow money

$26.4 billion (31 December 2011 est.)
$31.95 billion (31 December 2010 est.)

Stock of broad money

$29.63 billion (31 December 2011 est.)
$35.96 billion (31 December 2010 est.)

Stock of quasi money

$4.264 billion (31 December 2008)
$3.192 billion (31 December 2007)

Stock of domestic credit

$42.97 billion (31 December 2011 est.)
$45.6 billion (31 December 2010 est.)

Market value of publicly traded shares

$NA

Agriculture - products

wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans; cattle

Industries

petroleum, petrochemicals, aluminum, iron and steel, food processing, textiles, handicrafts, cement

Industrial production growth rate

2.7% (2010 est.)

Electricity - production

26.95 billion kWh (2008 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

22.89 billion kWh (2008 est.)

Electricity - exports

117 million kWh (2008 est.)

Electricity - imports

48 million kWh (2008 est.)

Oil - production

1.789 million bbl/day (2010 est.)

Oil - consumption

289,000 bbl/day (2010 est.)

Oil - exports

1.58 million bbl/day (2010 est.)

Oil - imports

575 bbl/day (2009 est.)

Oil - proved reserves

46.42 billion bbl (1 January 2011 est.)

Natural gas - production

15.9 billion cu m (2009 est.)

Natural gas - consumption

6.01 billion cu m (2009 est.)

Natural gas - exports

9.89 billion cu m (2009 est.)

Natural gas - imports

0 cu m (2011 est.)

Natural gas - proved reserves

1.548 trillion cu m (1 January 2011 est.)

Current Account Balance

-$1.839 billion (2011 est.)
$11.57 billion (2010 est.)

Exports

$12.93 billion (2011 est.)
$41.8 billion (2010 est.)

Exports - commodities

crude oil, refined petroleum products, natural gas, chemicals

Exports - partners

Italy 31.6%, France 13%, China 9.2%, Spain 9.1%, Germany 8.4%, US 4.5% (2009)

Imports

$14.1 billion (2011 est.)
$24.73 billion (2010 est.)

Imports - commodities

machinery, semi-finished goods, food, transport equipment, consumer products

Imports - partners

Italy 16.3%, China 10.3%, Turkey 9.7%, France 6.8%, Germany 6.4%, South Korea 6.2%, Egypt 5.7%, Tunisia 4.8% (2009)

Reserves of foreign exchange and gold

$71.99 billion (31 December 2011 est.)
$99.84 billion (31 December 2010 est.)

Debt - external

$5.285 billion (31 December 2011 est.)
$6.396 billion (31 December 2010 est.)

Stock of direct foreign investment - at home

$19.59 billion (31 December 2011 est.)
$19.39 billion (31 December 2010 est.)

Stock of direct foreign investment - abroad

$15.46 billion (31 December 2011 est.)
$15.2 billion (31 December 2010 est.)

Exchange rates

Libyan dinars (LYD) per US dollar -
1.6 (2011 est.)
1.2668 (2010 est.)
1.2535 (2009)
1.2112 (2008)
1.2604 (2007)

Fiscal year

Calendar year

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