Economy Libya
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):
$68 billion (2005 est.)
GDP (official exchange rate):
$31.49 billion (2005 est.)
GDP - real growth rate:
8.4% (2005 est.)
GDP - per capita (PPP):
$11,800 (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: 59% (2004 est.)
Unemployment rate:
30% (2004 est.)