_*Economy #_Overview: The socialist-oriented economy depends primarily upon revenues from the oil sector, which contributes practically all export earnings and about one-third of GNP. Since 1980, however, the sharp drop in oil prices and the resulting decline in export revenues have adversely affected economic development. In 1988 per capita GNP was the highest in Africa at $5,410, but it had been $2,000 higher in 1982. Severe cutbacks in imports over the past five years have led to shortages of basic goods and foodstuffs, although the reopening of the Libyan-Tunisian border in April 1988 and the Libyan-Egyptian border in December 1989 have somewhat eased shortages. Austerity budgets and a lack of trained technicians have undermined the government's ability to implement a number of planned infrastructure development projects. Windfall profits from the hike in world oil prices in late 1990 improved the foreign payments position and may permit Tripoli to ease austerity measures. The nonoil industrial and construction sectors, which account for about 22% of GDP, have expanded from processing mostly agricultural products to include petrochemicals, iron, steel, and aluminum. Although agriculture accounts for less than 5% of GNP, it employs 18% of the labor force. Climatic conditions and poor soils severely limit farm output, requiring Libya to import about 75% of its food requirements.
_#_GNP: $24 billion, per capita $5,860; real growth rate 3% (1989 est.)
_#_Inflation rate (consumer prices): 20% (1988 est.)
_#_Unemployment rate: 2% (1988 est.)
_#_Budget: revenues $8.1 billion; expenditures $9.8 billion, including capital expenditures of $3.1 billion (1989 est.)
_#_Exports: $6.1 billion (f.o.b., 1989 est.);
commodities—petroleum, peanuts, hides;
partners—Italy, USSR, FRG, Spain, France, Belgium/Luxembourg, Turkey
_#_Imports: $6.2 billion (f.o.b., 1989 est.);
commodities—machinery, transport equipment, food, manufactured goods;