Libya: Economic and Political Overview

Main Sectors of Industry

Libya's 6.7 million population includes a workforce of 2.3 million. Agriculture's share in Libya's economy is negligible, accounting for 1.6% of GDP and employing 9% of the workforce (World Bank). Main products include wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans, and cattle. Arid climate conditions and the poor quality of the soil severely limit agricultural production. The primary limitation on agricultural production is the landscape, with only approximately 12% of the total 15.4 million hectares being arable. While 470,000 hectares are deemed suitable for irrigation, only around 240,000 hectares are presently irrigated, primarily due to apprehensions regarding the depletion of underground water sources. Cereal crops are grown in coastal regions, where rainfed production or cropping with supplemental irrigation is feasible, as well as in certain arid areas in the south, under complete irrigation.

Industry is the backbone of the Libyan economy because of the strong petrochemical industry. It accounts for 80.3% of GDP, employing 23% of the active population (World Bank). Production includes petroleum, petrochemicals, aluminium, iron, steel, food processing, textiles, handicrafts, and cement. Manufacturing is underdeveloped (3% of GDP). Although the Libyan petrochemical industry, especially the country's petroleum exports, were negatively impacted by the pandemic and the drop of oil prices, the sector showed signs of recovery: Libya's state-owned National Oil Corporation (NOC) announced that the country had extracted over 432 million barrels of crude oil in 2023. Additionally, NOC reported production figures for other petroleum-related products, including nearly 1.24 billion cubic meters of natural gas, almost 2.43 million tonnes of condensates, almost 6.17 million tonnes of petroleum products, and 682,595 tonnes of petrochemical products for the same year.

Services account for 25.2% of GDP and its share in total employment stands at 68% (World Bank). Although this is the second-largest sector in Libya, significant industries, such as tourism and retail, are significantly underdeveloped. Financial services and transportation, however, account for a significant part of the service sector. According to the IMF, as of 2023, Libya's banking sector is described as rudimentary. The country hosts 20 banks, with their combined assets totaling around LYD 143 billion. Loans and credit facilities make up less than 15% of the total assets in the banking sector, while the majority, approximately 60%, consists of balances held at the Central Bank of Libya (CBL).

Source: World Bank - Latest available data.

Find out all the exchange rates daily on our service Currency Converter.

To go further, check out our service Import-Export Flows.

Main Services

Source: United Nations Statistics Division, Latest Available Data

Political Outline

Current Political Leaders

Chairman of the Presidential Council: Mohammed al-MANFI (since 5 February 2021)
Prime Minister: Abd-al-Hamid DUBAYBAH (since 5 February 2021)

Next Election Dates

The country's legislative elections were scheduled to be held on 21 December 2021. However, on that day, the head of the High National Election Commission (HNEC) ordered the dissolution of the electoral committees nationwide, which led to the indefinite postponement of the elections.
New parliamentary elections were scheduled to be held in 2022, however, on 23 January 2022, Prime Minister Abdulhamid Dbeibeh called for a constitution to be established before holding the delayed presidential and parliamentary elections. Since then, the voting has not taken place and presidential elections have also been postponed indefinitely, whereas legislative elections are expected to take place in December 2025.

Main Political Parties

Libya's Government of National Accord (GNA) was formed as an interim institution in the aftermath of the civil war. GNA has faced competition from the Tobruk-based Libyan National Army (LNA), despite having been recognised by the UN as the legitimate ruling body. In March 2021, the House of Representatives, previously loyal to the LNA, approved the formation of a Government of National Unity, which has the task of unifying two rival forces.

The largest political forces in the country include:
- National Forces Alliance (NFA): liberal, moderate coalition comprising at least 58 parties, holds almost half of parliamentary seats
- Justice and Construction Party (JCP): right-wing, abstains from government, large Muslim Brotherhood faction, Islamist, can no longer operate openly
- National Front Party: centre-left, liberal, progressive
- Union for Homeland: centre, localist, populist
- National Centrist Party: centre, nationalist, Islamic democracy, Islamic liberalism
- Homeland Party: conservative, Islamic democracy.

Type of State

The legal system in post-revolution Libya is undergoing constant change, influenced by both governmental and non-governmental entities.

Executive Power

Previously, the Libyan regime and, in particular, its political and economic system, was based on the Green Book, the founding work of Colonel Gaddafi, who saw in this book a third universal theory of synthesis between liberalism and Marxism.

Since the civil war and the political change that followed, the UN recognised the Libyan Transitional National Council (TNC) as the legitimate governing authority for Libya until an interim government is in place. The TNC was followed by the Government of National Accord (GNA), which has faced competition from the Tobruk-based Libyan National Army (LNA), despite having been recognised by the UN as the legitimate ruling body. In March 2021, the House of Representatives, previously loyal to the LNA, approved the formation of a Government of National Unity, which has the task of unifying two rival forces.

Legislative Power

Previously, the legislature was unicameral in Libya. The parliament consisted of the General People's Congress (GPC). Its members were elected representatives (called secretaries) of around 600 local bodies called ‘basic popular congresses', and served a term of four years.

The High Council of State acts as an advisory body aiming to reunite the Tripoli-based government with the Tobruk-based House of Representatives. The Council is able to advise both the interim Government of National Accord (GNA) and the House of Representatives (HoR), and its 145 members were appointed by the remaining members of its predecessor, the Libyan General National Congress.

Indicator of Freedom of the Press

World Rank:

165/180

Indicator of Political Freedom

Ranking:

Not Free

Political Freedom:

7/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House