Libya Economy - 2006

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 four 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 that it would abandon programs to build weapons of mass destruction in December 2003. Almost all US unilateral sanctions against Libya were removed in April 2004, helping Libya attract more foreign direct investment, mostly in the energy sector. 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 about 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.

GDP (purchasing power parity):
$48.29 billion (2005 est.)

GDP (official exchange rate):
$33.48 billion (2005 est.)

GDP - real growth rate:
8.5% (2005 est.)

GDP - per capita (PPP):
$8,400 (2005 est.)

GDP - composition by sector:
agriculture: 7.6%
industry: 49.9%
services: 42.5% (2005 est.)

Labor force:
1.64 million (2005 est.)

Labor force - by occupation:
agriculture: 17%
industry: 23%
services: 60% (2004 est.)

Unemployment rate:
30% (2004 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
-1% (2005 est.)

Investment (gross fixed):
11.4% of GDP (2005 est.)

Budget:
revenues: $25.34 billion
expenditures: $15.47 billion; including capital expenditures of $5.6 billion (2005 est.)

Public debt:
8% of GDP (2005 est.)

Agriculture - products:
wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans; cattle

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

Industrial production growth rate:
NA%

Electricity - production:
14.4 billion kWh (2003)

Electricity - consumption:
13.39 billion kWh (2003)

Electricity - exports:
0 kWh (2003)

Electricity - imports:
0 kWh (2003)

Oil - production:
1.643 million bbl/day (2005 est.)

Oil - consumption:
237,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
40 billion bbl (2005 est.)

Natural gas - production:
7 billion cu m (2003 est.)

Natural gas - consumption:
6.25 billion cu m (2003 est.)

Natural gas - exports:
770 million cu m (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
1.321 trillion cu m (2005)

Current account balance:
$14.44 billion (2005 est.)

Exports:
$30.79 billion f.o.b. (2005 est.)

Exports - commodities:
crude oil, refined petroleum products, natural gas

Exports - partners:
Italy 37.2%, Germany 16.6%, Spain 11.8%, Turkey 7.1%, France 6.2% (2004)

Imports:
$10.82 billion f.o.b. (2005 est.)

Imports - commodities:
machinery, transport equipment, semi-finished goods, food, consumer products

Imports - partners:
Italy 25.2%, Germany 11%, South Korea 6%, UK 5.4%, Tunisia 4.7%, Turkey 4.6% (2004)

Reserves of foreign exchange and gold:
$32.31 billion (2005 est.)

Debt - external:
$4.267 billion (2005 est.)

Economic aid - recipient:
ODA, $4.4 million (2002)

Currency (code):
Libyan dinar (LYD)

Exchange rates:
Libyan dinars per US dollar - 1.3084 (2005), 1.305 (2004), 1.2929 (2003), 1.2707 (2002), 0.6051 (2001)