Libya Economy Profile 2008

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. 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 (purchasing power parity)

$78.79 billion (2007 est.)

GDP (official exchange rate)

$66.01 billion (2007 est.)

GDP - real growth rate

5.4% (2007 est.)

GDP - per capita (PPP)

$13,100 (2007 est.)

GDP - composition by sector

agriculture: 2.1%
industry: 81.7%
services: 16.2% (2007 est.)

Population below poverty line

7.4% (2005 est.)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

3.3% (2007 est.)

Investment (gross fixed)

8.8% of GDP (2007 est.)

Labor force

1.82 million (2007 est.)

Labor force - by occupation

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

Unemployment rate

30% (2004 est.)

Budget

revenues: $39.62 billion
expenditures: $19.51 billion (2007 est.)

Public debt

4.8% of GDP (2007 est.)

Industries

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

Industrial production growth rate

5.6% (2007 est.)

Electricity - production

21.15 billion kWh (2005)

Electricity - consumption

18.18 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

1.72 million bbl/day (2006 est.)

Oil - consumption

266,000 bbl/day (2005 est.)

Oil - imports

1,233 bbl/day (2004)

Oil - exports

1.326 million bbl/day (2004)

Oil - proved reserves

39.13 billion bbl (1 January 2006 est.)

Natural gas - production

10.84 billion cu m (2005 est.)

Natural gas - consumption

5.591 billion cu m (2005 est.)

Natural gas - exports

5.246 billion cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

1.43 trillion cu m (1 January 2006 est.)

Current Account Balance

$11.71 billion (2007 est.)

Agriculture - products

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

Exports

$36.37 billion f.o.b. (2007 est.)

Exports - commodities

crude oil, refined petroleum products, natural gas, chemicals

Exports - partners

Italy 36.7%, Germany 14.3%, Spain 8.7%, US 6.1%, France 5.6%, Turkey 5.3% (2006)

Imports

$15.35 billion f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

Italy 18.9%, Germany 7.9%, China 7.5%, Tunisia 6.3%, France 5.8%, Turkey 5.2%, US 4.7%, South Korea 4.3%, UK 4% (2006)

Reserves of foreign exchange and gold

$69.51 billion (31 December 2007 est.)

Debt - external

$4.837 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$4.305 billion (2006 est.)

Stock of direct foreign investment - abroad

$2.163 billion (2006 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

ODA, $24.44 million (2005 est.)

Currency (code)

Libyan dinar (LYD)

Exchange rates

Libyan dinars per US dollar - 1.2604 (2007), 1.3108 (2006), 1.3084 (2005), 1.305 (2004), 1.2929 (2003)

Fiscal year

calendar year