Economy of Libya
Overview
The Libyan economy depends primarily upon revenues from the oil sector, which contribute about 95% of export earnings, about one-quarter of GDP, and 60% of public sector wages. Substantial revenues 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 flows down to the lower orders of society.
Libyan officials in the past five years have made progress on economic reforms 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 as Libya announced in December 2003 that it would abandon programs to build weapons of mass destruction. Almost all US unilateral sanctions against Libya were removed in April 2004, helping Libya attract more foreign direct investment, mostly in the energy sector.
Libyan oil and gas licensing rounds continue to draw high international interest; the National Oil Company set a goal of nearly doubling oil production to 3 million bbl/day by 2015. Libya faces a long road ahead in liberalizing the socialist-oriented economy, but initial steps - including applying for WTO membership, reducing some subsidies, and announcing plans for privatization - are laying the groundwork for a transition to a more market-based economy.
The non-oil manufacturing and construction sectors, which account for more than 20% of GDP, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminum. 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 are being invested in desalinization research to meet growing water demands.
GDP
Real Growth Rate
0%
Per Capita
USD Unknown
From Agriculture
0%
From Industry
0%
From Services
0%
Labour Force
Available for Work
Unknown
Working in Agriculture
0%
Working in Industry
0%
Working in Services
0%
Unemployment Rate
0%
Population Below Poverty Line
7%
Inflation Rate
7%
Investment as Percent of GDP
9%
Budget
Revenues
USD 39,850 (m)
Expenditures
USD 19,470 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans; cattle
Core Industries
Petroleum, iron and steel, food processing, textiles, handicrafts, cement
Exports
Value
USD 40,470 (m)
Commodities
Petroleum, iron and steel, food processing, textiles, handicrafts, cement
Partners
Italy 36.8%, Germany 14.3%, Spain 8.7%, US 6.1%, France 5.6%, Turkey 5.3% (2006)
Imports
Value
USD 14,470 (m)
Commodities
Machinery, semi-finished goods, food, transport equipment, consumer products
Partners
Italy 18.9%, Germany 7.8%, China 7.6%, Tunisia 6.3%, France 5.8%, Turkey 5.3%, US 4.7%, South Korea 4.3%, UK 4% (2006)
External Debt
USD 4,837 (m)
Fiscal Year
Calendar year
