Libya Economy Profile 2009

Economy - 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. The expected weakness in world hydrocarbon prices throughout 2009 will reduce Libyan government tax income and constrain Libyan economic growth in 2009. 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. UN Sanctions against Libya were lifted in September 2003. 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 continue to draw high international interest; the National Oil Company set a goal of nearly doubling oil production to 3 million bbl/day by 2012. 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 (purchasing power parity)

$88.83 billion (2008 est.)
$83.57 billion (2007 est.)
$78.25 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$100.1 billion (2008 est.)

GDP - real growth rate

6.3% (2008 est.)
6.8% (2007 est.)
5.9% (2006 est.)

GDP - per capita (PPP)

$14,400 (2008 est.)
$13,800 (2007 est.)
$13,300 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 1.7%
industry: 70.9%
services: 27.4% (2008 est.)

Population below poverty line

7.4% (2005 est.)

Labor force

1.64 million (2008 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)

9.3% of GDP (2008 est.)

Budget

revenues: $58.04 billion
expenditures: $35.22 billion (2008 est.)

Public debt

4.2% of GDP (2008 est.)
8.8% of GDP (2004 est.)

Inflation rate (consumer prices)

10.4% (2008 est.)
6.3% (2007 est.)

Central bank discount rate

5% (31 December 2008)
4% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
6% (31 December 2007)

Stock of money

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

Stock of quasi money

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

Stock of domestic credit

$NA (31 December 2008)
$NA (31 December 2007)

Industries

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

Industrial production growth rate

6.2% (2008 est.)

Electricity - production

23.98 billion kWh (2007 est.)

Electricity - production by source

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

Electricity - consumption

20.71 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

1.845 million bbl/day (2007 est.)

Oil - consumption

278,700 bbl/day (2006 est.)

Oil - imports

575.3 bbl/day (2005)

Oil - exports

1.455 million bbl/day (2005)

Oil - proved reserves

45 billion bbl (1 January 2008 est.)

Natural gas - production

14.8 billion cu m (2006 est.)

Natural gas - consumption

6.39 billion cu m (2006 est.)

Natural gas - exports

9.9 billion cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

1.419 trillion cu m (1 January 2008 est.)

Current Account Balance

$32.78 billion (2008 est.)
$28.45 billion (2007 est.)

Agriculture - products

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

Exports

$60.26 billion (2008 est.)
$46.97 billion (2007 est.)

Exports - commodities

crude oil, refined petroleum products, natural gas, chemicals

Exports - partners

Italy 39.5%, Germany 12.5%, France 7.7%, Spain 7.1%, US 6.7%, China 4.2% (2008)

Imports

$25.31 billion (2008 est.)
$17.7 billion (2007 est.)

Imports - commodities

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

Imports - partners

Italy 22.8%, Germany 8.9%, China 8.5%, Turkey 6.3%, Tunisia 6%, US 4.2%, France 4.2% (2008)

Reserves of foreign exchange and gold

$92.51 billion (31 December 2008 est.)
$79.6 billion (31 December 2007 est.)

Debt - external

$6.068 billion (31 December 2008 est.)
$4.837 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$11.23 billion (31 December 2008 est.)
$8.775 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$5.15 billion (31 December 2008 est.)
$3.7 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

ODA, $24.44 million (2005 est.)

Currency (code)

LYD

Currency (code)

Libyan dinar (LYD)

Exchange rates

Libyan dinars (LYD) per US dollar - 1.2112 (2008 est.), 1.2604 (2007), 1.3108 (2006), 1.3084 (2005), 1.305 (2004)

Fiscal year

calendar year