View the information below regarding the economy of Libya. The summary and statistics contains
gdp, industry, agriculture and more for Libya. If you need other information please visit the
Libya Country Page.
GDP (2000 est.): $45.4 billion.
Per capita GDP (2000 est.): $8,900.
Natural resources: Petroleum, natural gas, gypsum.
Agriculture: Products -- wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans; cattle; approximately 75% of Libya's food is imported.
Industry: Types -- petroleum, food processing, textiles, handicrafts, cement.
Trade: Exports (2000 est.)--$13.9 billion: crude oil, refined petroleum products. Major markets (1999 )--Italy (33%),Germany (24%), Spain (10%), France (5%), Turkey (4%), Tunisia (4%). Imports (2000 est.)--$7.6 billion: machinery, transport equipment, food, manufactured goods. Major suppliers (1999)-- Italy (24%), Germany (12%), Tunisia (9%), UK (7%), France (6%), South Korea (5%)
Economoy of Liberia
The government dominates Libya’s socialist-oriented economy through complete control of the country’s oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and 30% of the gross domestic product. Oil revenues constitute the principal source of foreign exchange. Much of the country’s income has been lost to waste, corruption, conventional armaments purchases, and attempts to develop weapons of mass destruction, as well as to large donations made to developing countries in attempts to increase Qadhafi’s influence in Africa and elsewhere. Although oil revenues and a small population give Libya one of the highest per capita GDPs in Africa, the government’s mismanagement of the economy has led to high inflation and increased import prices, resulting in a decline in the standard of living.
Libya’s gross domestic product grew in 2001 due to high oil prices, the end of a long cyclical drought, and increased foreign investment following the suspension of UN sanctions in 1999.
Despite efforts to diversify the economy and encourage private sector participation, extensive controls of prices, credit, trade, and foreign exchange constrain growth. Import restrictions and inefficient resource allocations have caused periodic shortages of basic goods and foodstuffs.
Although agriculture is the second-largest sector in the economy, Libya depends on imports in most foods. Climatic conditions and poor soils severely limit output, while higher incomes and a growing population have caused food consumption to rise. Domestic food production meets about 25% of demand.
The U.S. Government has prohibited the importation of Libyan crude oil into the United States since March 1982, as well as strict controls on U.S.-origin goods intended for export to Libya. On January 7, 1986, the U.S. imposed economic sanctions against Libya which broadly prohibit U.S. persons from engaging in unauthorized financial transactions involving Libya, including, in part, the following: the export to Libya of all goods, services, or technology; the import of goods or services of Libyan origin; engaging in the performance of a contract in support of an industrial, commercial, or government project in Libya; or dealing in any property in which the Government of Libya has any interest. The economic sanctions also prohibit U.S. persons from working in Libya.
Although UN sanctions were suspended in 1999 and lifted in 2003, foreign investment in the Libyan gas and oil sectors has been severely curtailed due to the United States’ Iran and Libya Sanctions Act (ILSA), which caps the amount any foreign company can invest in Libya yearly at $20 million (lowered from $40 million in 2001).