Economy of Libya Source: en.wikipedia.org/wiki/Economy_of_Libya

Economy of Libya
Tripoli Central Business District from Oea Park.JPG
Tripoli, financial capital of Libya
CurrencyLibyan dinar (LYD, ل.د)
calendar year
Trade organisations
Country group
PopulationIncrease 6,678,567 (2018)[3]
  • Increase $40.951 billion (nominal, 2018 est.)[4]
  • Increase $74.719 billion (PPP, 2018 est.)[4]
GDP rank
GDP growth
  • 26.7% (2017) 7.9% (2018e)
  • 5.5% (2019f) −58.7% (2020f) +170% (2021) </ref>
GDP per capita
  • Increase $6,288 (nominal, 2018 est.)[4]
  • Increase $11,473 (PPP, 2018 est.)[4]
GDP per capita rank
GDP by sector
  • agriculture 1.3%
  • industry 63.8%
  • services 34.9%
  • (2017 est.)[5]
9.293% (2018)[4]
Population below poverty line
  • NA%
  • about one-third of Libyans live at or below the national poverty line[6]
Increase 0.708 high (2018)[7] (108th)
Labour force
  • Increase 2,553,671 (2019)[8]
  • 38.7% employment rate (2012)[9]
Labour force by occupation
  • agriculture: 17%
  • industry: 23%
  • services: 59%
  • (2004)[6]
Unemployment30% (2004 est.)[6]
Main industries
petroleum, steel, iron, food processing, textiles, cement
Steady 186th (below average, 2020)[10]
ExportsIncrease $18.38 billion (2017 est.)[6]
Export goods
crude oil, refined petroleum products, natural gas, chemicals
Main export partners
Imports$11.36 billion (2017 est.)[6]
Import goods
machinery, transport equipment, semi-finished goods, food, consumer products
Main import partners
FDI stock
  • Increase $20.21 billion (31 December 2017 est.)[6]
  • Decrease Abroad: $20.97 billion (31 December 2017 est.)[6]
Increase $2.574 billion (2017 est.)[6]
Positive decrease $3.02 billion (31 December 2017 est.)[6]
Public finances
Positive decrease 4.7% of GDP (2017 est.)[6]
−25.1% (of GDP) (2017 est.)[6]
Revenues15.78 billion (2017 est.)[6]
Expenses23.46 billion (2017 est.)[6]
Economic aidrecipient ODA $9 million (2010), $642 million (2011), $87 million (2012)[12]
Foreign reserves
Increase $74.71 billion (31 December 2017 est.)[6]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

The economy of Libya depends primarily on revenues from the petroleum sector, which represents over 95% of export earnings and 60% of GDP.[13] These oil revenues and a small population have given Libya one of the highest nominal per capita GDP in Africa.[14][13]

After 2000, Libya recorded favourable 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.[15] As of 2017, Libya's per capita PPP GDP stands at 60% of its pre-war level.[15]

Macroeconomic trends[edit]

Libya had seen a fantastic growth rate, however, these proved unsustainable in the face of global oil recession and international sanctions. Consequently, the GDP per capita shrank by 40% in the 1980s. Successful diversification and integration into the international community helped current GDP per capita to cut further deterioration to just 3.2% in the 1990s.

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 1980–2017. Inflation below 5% is in green.[16]

Year GDP
(in Bil. US$ PPP)
GDP per capita
(in US$ PPP)
GDP growth
Inflation rate
(in Percent)
Budget balance
(in % of GDP)
1980 83.3 27,894 Increase0.6% Negative increase14.4% n/a
1981 Decrease72.8 Decrease23,313 Decrease−20.0% Negative increase13.2% n/a
1982 Increase78.6 Increase25,003 Increase1.5% Negative increase13.8% n/a
1983 Decrease77.8 Decrease22,816 Decrease−4.7% Negative increase10.5% n/a
1984 Decrease73.8 Decrease20,766 Decrease−8.3% Negative increase12.4% n/a
1985 Increase76.6 Increase21,679 Increase0.6% Negative increase9.1% n/a
1986 Decrease69.4 Decrease18,872 Decrease−11.4% Increase3.4% n/a
1987 Decrease60.7 Decrease15,831 Decrease−14.7% Increase4.4% n/a
1988 Increase67.6 Decrease15,624 Increase7.6% Increase3.1% n/a
1989 Increase75.3 Increase16,644 Increase7.2% Increase4.5% n/a
1990 Increase80.9 Increase19,001 Increase3.7% Increase0.7% Increase4.8%
1991 Increase96.7 Increase22,186 Increase15.7% Negative increase11.7% Increase9.9%
1992 Decrease96.3 Decrease21,581 Decrease−2.7% Negative increase9.5% Increase1.3%
1993 Decrease94.8 Decrease20,797 Decrease−3.8% Negative increase7.5% Decrease−4.8%
1994 Increase98.7 Increase21,231 Increase1.9% Negative increase10.7% Decrease−1.7%
1995 Decrease88.3 Decrease18,588 Decrease−12.4% Negative increase8.3% Increase4.9%
1996 Increase92.3 Increase19,064 Increase2.6% Increase4.0% Increase12.6%
1997 Increase93.3 Decrease18,959 Decrease−0.6% Increase3.6% Decrease−1.3%
1998 Increase93.9 Decrease18,749 Decrease−0.4% Increase3.7% Decrease−1.6%
1999 Increase95.8 Increase18,824 Increase0.5% Increase2.6% Increase6.6%
2000 Increase101.6 Increase19,614 Increase3.7% Positive decrease−2.9% Increase14.1%
2001 Increase102.1 Decrease19,408 Decrease−1.8% Positive decrease−8.8% Increase0.4%
2002 Increase102.7 Decrease19,224 Decrease−0.9% Positive decrease−9.9% Increase7.2%
2003 Increase118.3 Increase21,833 Increase13.0% Positive decrease−2.1% Increase6.4%
2004 Increase127.0 Increase23,051 Increase4.5% Increase1.3% Increase11.7%
2005 Increase146.7 Increase26,236 Increase11.9% Increase2.7% Increase31.4%
2006 Increase161.0 Increase28,294 Increase6.5% Increase1.5% Increase31.8%
2007 Increase175.8 Increase30,411 Increase6.4% Negative increase6.2% Increase28.6%
2008 Increase184.0 Increase31,293 Increase2.7% Negative increase10.4% Increase32.5%
2009 Decrease179.9 Decrease30,178 Decrease−3.0% Increase2.4% Decrease−6.5%
2010 Increase187.8 Increase31,094 Increase3.2% Increase2.5% Increase12.5%
2011 Decrease63.9 Decrease10,792 Decrease−66.7% Negative increase15.9% Decrease−17.2%
2012 Increase146.3 Increase23,282 Increase124.7% Negative increase6.1% Increase28.6%
2013 Decrease93.9 Decrease14,987 Decrease−36.8% Increase2.6% Decrease−5.1%
2014 Decrease44.9 Decrease7,175 Decrease−53.0% Increase2.4% Decrease−73.8%
2015 Decrease39.5 Decrease6,246 Decrease−13.0% Negative increase9.8% Decrease−131.0%
2016 Decrease37.0 Decrease5,801 Decrease−7.4% Negative increase25.9% Decrease−113.3%
2017 Increase64.4 Increase9,986 Increase70.8% Negative increase28.0% Decrease−43.2%

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).

Oil sector[edit]

Development of oil production in Libya

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.[17] 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.[18]

A map of world oil reserves according to U.S. EIA, 2017

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.[19] 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.[20]

Statistic Amount
Proven Oil Reserves (2007E) 41.5 Gbbl (6.60×10^9 m3)
Oil Production (2006E) 1.8 million barrels per day (290×10^3 m3/d) (95% crude)
Oil Consumption (2006E) 284,000 barrels per day (45,200 m3/d)
Net Oil Exports (2006E) 1.5 million barrels per day (240×10^3 m3/d)
Crude Oil Distillation Capacity (2006E) 378 kbbl/d (60.1×10^3 m3/d)
Proven Natural Gas Reserves (2007E) 52.7×10^12 cu ft (1.49×1012 m3)
Natural Gas Production (2006E) 3,999×10^9 cu ft (1.132×1011 m3)
Natural Gas consumption (2005E) 206×10^9 cu ft (5.8×109 m3)

1. Energy Information Administration (2007)

Field Development and Exploration[edit]

Oil is Libya's major resource.

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.[21] 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.[22]

Refining and Downstream[edit]

Libya has five domestic refineries:

Refinery Capacity Operator
Zawia Refinery 120,000 ZOC
Ras Lanuf Refinery 220,000 Ras Lanuf
El-Brega Refinery 10,000 SOC
Tobruk Refinery 20,000 Agoco
Sarir Refinery 10,000 Agoco

1. Amounts in barrels per day.


Pivot irrigation in Kufra, southeast Cyrenaica. Oil wealth has enabled Libya to pursue extravagant projects such as agriculture and the Great Manmade River in the Sahara Desert.
Modern buildings in Tripoli before the wars, 2009

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.[23]

Libya produced in 2018:

In addition to smaller productions of other agricultural products. [24]


The tourism industry 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.[25][26] The country is best known for its ancient Greek and Roman ruins and Sahara desert landscapes.

Labor market[edit]

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.[27]

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.[28][29] 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.[18]

External trade and finance[edit]

Libyan export destinations in 2006.

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.[30]


A proportional representation of Libyan exports.

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

International rankings[edit]

Organisation Survey Ranking
The Economist The World in 2005 - Worldwide quality-of-life index, 2005 70 out of 111
Energy Information Administration Greatest Oil Reserves by Country, 2006 9 out of 20
Reporters Without Borders Press Freedom Index (2007) 155 out of 169
Transparency International Corruption Perceptions Index 2007 131 out of 180
United Nations Development Programme Human Development Index 2005 58 out of 177


  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Population, total - Libya". data.worldbank.org. World Bank. Retrieved 15 November 2019.
  4. ^ a b c d e "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 15 November 2019.
  5. ^ "The World Factbook- Libya". Central Intelligence Agency. Retrieved 5 May 2018.
  6. ^ a b c d e f g h i j k l m n "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 10 February 2019.
  7. ^ "Human Development Indices and Indicators: 2018 Statistical update". hdr.undp.org. United Nations Development Programme. Retrieved 15 November 2019.
  8. ^ "Labor force, total - Libya". data.worldbank.org. World Bank. Retrieved 27 November 2019.
  9. ^ "Employment to population ratio, 15+, total (%) (national estimate) - Libya". data.worldbank.org. World Bank. Retrieved 27 November 2019.
  10. ^ "Ease of Doing Business in Libya". Doingbusiness.org. Retrieved 29 November 2017.
  11. ^ a b "Foreign trade partners of Libya". The Observatory of Economic Complexity. Retrieved 18 June 2021.
  12. ^ http://www.oecd.org/dac/stats/documentupload/LBY.JPG OECD Statistics
  13. ^ a b "Libya". Organization of the Petroleum Exporting Countries. Retrieved 5 May 2018.
  14. ^ USD 12,062 as of 2010 (IMF estimate); rank 48 worldwide, followed by Equatorial Guinea with USD 11,081 on rank 51.
  15. ^ a b "GDP per capita, PPP (constant 2011 international $) | Data". data.worldbank.org. Retrieved 3 September 2018.
  16. ^ "Report for Selected Countries and Subjects". www.imf.org. Retrieved 6 October 2018.
  17. ^ Oil and Gas Journal, 2007
  18. ^ a b World Bank 2006
  19. ^ International Crude Oil Market Handbook
  20. ^ EIA 2007
  21. ^ "OMV's 1st Oil Find in Libya since Revolution". libya-businessnews.com/. Libya Business News. 22 October 2013. Retrieved 4 September 2015.
  22. ^ EIA 2007 p.3
  23. ^ Doing Business in LIBYA: A Country Commercial Guide for U.S. Companies, March, 2006
  24. ^ Libya production in 2018, by FAO
  25. ^ Annual Review of Developments in Globalization and Regional Integration in the Arab Countries, 2007. Annual Review of Developments in Globalization and Regional Integration in the Arab Countries. UN. 2013. p. 21. doi:10.18356/b9466ffc-en. ISBN 9789210557740. Retrieved 11 March 2018.
  26. ^ "Tripoli, Libya – A Prosperous Prospect. - Tuesday, 23rd September 2008 at 4Hoteliers". 4hoteliers.com. Retrieved 11 March 2012.
  27. ^ Although, in the absence of a labor force survey, estimates are surrounded by considerable uncertainty
  28. ^ http://www.seenews.com/news/latestnews/bosnia_senergoinvestsees2007profitunchanging_signscontractsinlibya_-151444/ Archived 27 February 2008 at the Wayback Machine Bosnia's Energoinvest Sees 2007 Profit Flat, Signs Contracts in Libya, Algeria
  29. ^ http://www.arabianbusiness.com/506991-bosnian-firm-clinches-52mn-libya-deal?ln=en Bosnian firm clinches $52mn Libya deal
  30. ^ Libya Stake in Circle Oil Frozen


See also[edit]

External links[edit]