Economic trends
The civil war has gravely affected the Libyan economy. In 2011, GDP contracted by nearly 50%, with losses estimated at over EUR 20 billion. The year 2012 should bring economic recovery thanks to the resumption of the country's powerful oil industry (2% of world production).
However, the big challenge remains the country's economic diversification away from oil dependence. The country's reconstruction, the modernization of its infrastructure - including transportation and telecommunications - and the development of public services will be the priorities of the Libyan government in 2012.
Main branches of industry
Libya's economy depends mainly on oil revenues, which comprise almost all exports and over half of GDP: the country is the fourth largest oil producer in Africa, holding more than 40% of African reserves and 3% of world reserves. Libya is the second largest exporter of black gold in Africa. Oil alone accounts for one quarter of the country's GDP.
The construction sector is booming (20% of GDP), both on individual level and regarding large-scale public infrastructure. Other industries of the country are food processing, textiles, handicrafts and cement.
Agriculture is the second largest sector in Libya's economy. The country produces wheat, barley, olives, dates, citrus fruits, vegetables, peanuts, soy and livestock. However, the arid climate conditions and the poor quality of the soil limit the production severely. The recent growth in population has caused a considerable rise in food consumption. Therefore, 75% of the food consumed in Libya has to be imported.
International trade
Libya's development, which has benefited from the lifting of the US and European trade embargoes and the country's slow return onto the international trade scene - stopped in 2011 due to the eruption of the civil war. The conflict halted exports, including exports of oil. In addition, economic and trade sanctions imposed by Western countries before the fall of Colonel Gaddafi have significantly hampered trade
The regime change should bring economic recovery and a rise in foreign trade in 2012.
Libya is an active member of the AMU (Arab Maghreb Union) and it has also applied to become a member of the WTO, evidence of its wish to become more open to the outside.
The Lybian export basket is not at all diversified, since 95% of its exports are connected to the oil industry.
The three major import partners of Libya are: Italy, Germany and Japan. The mainly imported commodities are iron and steel, industrial machines, vehicles, cereals, as well as other food products.
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Last updates: May 2012
