Libya's economy is projected to rebound in 2025, due to an expected increase in its oil production following disruption in output last year that hit growth, the International Monetary Fund has said while urging more reforms.
The country's real gross domestic product grew 2.4 per cent last year after a healthy 10.2 per cent in 2023, rebounding from a recession-riddled 2022. That growth was supported by increased oil production, made possible by an improved security situation, as well surges in private consumption and exports, IMF data shows.
Real GDP growth this year will also be boosted by the non-hydrocarbon sector, which is forecast to remain around its 2021-2024 average growth rate of between 5 and 6 per cent amid steady government spending, the Washington-based fund said in a statement concluding its delegation's mission to the Opec member.
The IMF did not provide a figure for its forecast, which it expects to moderate in the medium term. It previously projected 2025 real GDP growth at 13.7 per cent, which would be the highest in the Middle East and North Africa region.
However, its latest outlook is still subject to factors including Libya's political environment, intensifying regional conflicts and oil price volatility.
"The current account and fiscal balances are slated to remain under pressure over the medium term, driven by projected lower oil prices and continued demands for the government to spend its entire revenues," the IMF said.
Inflation, meanwhile, hovered near 2 per cent in 2024, reflecting extensive subsidies and affected by measurement inaccuracies, the IMF said. The country's consumer price index was based on an outdated consumption basket that covered only Tripoli, probably leading to an imprecise estimation of inflation.
"Substantial fiscal efforts will be needed to preserve sustainability and achieve intergenerational equity, including by introducing well-calibrated and orderly wage and energy subsidy reforms and mobilising nonhydrocarbon revenues," the IMF said.
Libya’s economy is heavily dependent on oil and gas. In 2023, the sector accounted for about 97 per cent of the country's exports, more than 90 per cent of fiscal revenue and 68 per cent of GDP, according to data from the African Development Bank Group.
However, Libya's situation has remained unstable, which has the potential to turn off companies from investing in the country. The political and stability situations may cause oil price fluctuations, which may potentially harm the security of investments and profitability, the IMF said.
That instability spilled over into the oil sector last year. In December, Libya's National Oil Company was forced to declare force majeure at its Zawiya Refinery after clashes inflicted damage in the facility, adding to its economic woes.
In January, Libya was, for the first time, allowed by the UN to reinvest proceeds from the $70 billion of assets bought with its oil wealth since sanctions were imposed in 2011.
Tripoli is also working to stabilise its private sector, despite continuing political uncertainty and weakness of the regulatory framework for businesses.
"The lack of access to finance and foreign currency, dominance of public employment and poor governance are major impediments to growth in Libya," the IMF said.
"The authorities should initiate a comprehensive economic reform plan that focuses on private sector development, starting with upgrading regulatory frameworks, enhancing access to finance and improving the security situation."
Libya's banking sector, meanwhile, was able to "successfully" boost its capital and financial soundness metrics, with significant improvements in non-performing loan ratios, the IMF acknowledged.
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
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Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
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Price: From Dh117,059
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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Roll of honour 2019-2020
Dubai Rugby Sevens
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Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
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Gulf Under 19s final
Dubai College A 50-12 Dubai College B
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
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UAE currency: the story behind the money in your pockets
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Engine: Duel electric motors
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On sale: Available for pre-order now
Price: On request
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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Engine: 2.0-litre 4-cylturbo
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