Libya: Economic and Political Overview

Main Sectors of Industry

Libya's 7.3 million population includes a workforce of 2.42 million. Agriculture's share in Libya's economy is negligible, accounting for 1.8% of GDP and employing 8.7% 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. 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. According to FAO, cereal production in 2024 was estimated at 164,000 tonnes, about 22% below average, due to poor rainfall, high temperatures in the northwest, and costly inputs; while cereal imports for 2024/25 are expected to exceed 3.2 million tonnes, with wheat imports forecast at 1.4 million tonnes—around 4% above average.

Industry is the backbone of the Libyan economy because of the strong petrochemical industry. It accounts for 77.3% of GDP, employing 23.2% of the active population (World Bank). Production includes petroleum, petrochemicals, aluminium, iron, steel, food processing, textiles, handicrafts, and cement, while manufacturing is underdeveloped (3% of GDP). Although the Libyan petrochemical industry, especially petroleum exports, were negatively impacted by the pandemic and the drop of oil prices, the sector showed signs of recovery in recent years: Libya's state-owned National Oil Corporation (NOC) announced that the country’s daily crude oil production surpassed the target set for 2024, reaching 1,405,609 barrels, along with 52,633 barrels of condensates.

Services account for 25.4% of GDP and its share in total employment stands at 68.1% (World Bank). Although this is the second-largest sector in Libya, significant industries, such as tourism and retail, are still 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.

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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

Presidential and parliamentary elections: April 2026.

Main Political Parties

The Government of National Accord (GNA) was established as an interim authority following Libya’s civil war and was recognised by the United Nations. However, it faced strong opposition from the Tobruk-based Libyan National Army (LNA), led by Khalifa Haftar. In March 2021, the House of Representatives (HoR), formerly aligned with the LNA, approved the formation of the Government of National Unity (GNU) in an effort to bridge the divide between rival administrations.

The main political parties 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

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

Executive Power

Under Muammar Gaddafi, Libya's political and economic system was based on the Green Book, which outlined his "Third Universal Theory"—a proposed synthesis of liberalism and Marxism.

After Gaddafi’s fall in 2011, the UN recognised the Transitional National Council (TNC) as the interim authority. It was succeeded in 2015 by the Government of National Accord (GNA), which faced opposition from the eastern-based Libyan National Army (LNA), led by Khalifa Haftar.

In March 2021, a Government of National Unity (GNU) was formed to unify rival administrations, with Abdul Hamid Dbeibeh as Prime Minister. However, political divisions persisted, and in 2022 the eastern House of Representatives appointed a rival government under Fathi Bashagha.

As of 2025, Libya remains divided between the Tripoli-based GNU and the eastern-based Government of National Stability, with ongoing UN-led efforts to organise national elections and reunify institutions.

Legislative Power

Under Gaddafi, Libya had a unicameral legislature known as the General People's Congress (GPC). Its members—referred to as secretaries—were elected from around 600 local units called basic popular congresses, serving four-year terms.

Today, Libya’s legislative structure remains divided. The High Council of State functions as an advisory body, primarily supporting efforts to reconcile the Tripoli-based Government of National Unity (formerly the GNA) with the Tobruk-based House of Representatives (HoR). The Council has 145 members, appointed by the remnants of the former General National Congress, and provides recommendations to both the HoR and the Tripoli-based executive.

Indicator of Political Freedom

Political Freedom:

7/7