Context
Since the lifting of UN sanctions in 2003, Libya maintained a high level of economic growth. In 2010, the International Monetary Fund Article IV consultations acknowledged that a large public investment program continued to sustain Libya’s non-oil growth at around 7%; the country’s overall growth was at 10%. Oil represented 98% of Libya’s GDP, while construction - financed by a $225 billion Public Investment Program – and services dominated the non-oil economy. As a member of OPEC, Libya was ranked as the fourth largest oil producer in Africa. The country exported 1.8 million barrels of oil per day for an estimated value of 43 trillion dollars. Central Bank of Libya and the Libyan Investment Authority managed an estimated $150 billion (equal to 160% of GDP) of oil reserves.
Following the political crisis, the Energy Investment Authority estimated that production of the light and sweet (low in sulfur) crude Libyan oil decreased by 80%. As foreign companies suspended drilling, Libyan operated companies remained on the oil fields, mainly to ensure maintenance. Many of the 2.5 million migrant population in Libya, employed in construction and services, fled the country. According to humanitarian organizations, as of April 11, over 500,000 workers, mostly third country nationals and thousand others remain stranded and displaced inside Libya and within its borders.
Libya depends almost entirely on imports for domestic food consumption and medical supplies. The United Nations agencies have reported shortages in medical supplies and basic commodities in light of the situation in the country. In addition, a food crisis is ongoing and the heavy fighting throughout the country has caused a humanitarian emergency within Libya.
Prior to the recent political unrest, Libya’s social condition was considered high for regional standards. Life expectancy at birth was 74 years. In a relative short period of time, Libya achieved universal access for primary education, with 98% gross enrollment for secondary, and 46% for tertiary education. In the past decade, girls’ enrollment increased by 12% in all levels of education. In secondary and tertiary education, girls outnumbered boys by 10%. However, the quality of education remains low and the curricula in higher education are inadequate for the job market. Furthermore, the rate of unemployment was estimated at an astonishing 30%, particularly among the youth adding to the challenge that lie ahead.
Strategy
The World Bank’s program with Libya has included a limited number of studies, technical assistance activities and training programs. The World Bank, United Nations and other agencies are engaged in an effort to monitor the impact of the conflict in the country, support humanitarian agencies in the field and prepare for a possible future re-engagement in Libya.
All dollar figures are in US dollar equivalents. Updated April 2011
For more information, please contact:
In Washington:Â Thoko Moyo, tmoyo@worldbank.org
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