Libya: Economic and Political Overview

Main Sectors of Industry

Libya's 6.5 million population includes a work force of 2.5 million. Agriculture's share in Libya's economy is negligible, accounting for 4.1% of GDP and employing 16.4% 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.

Industry is the backbone of the Libyan economy because of the strong petrochemical industry. It accounts for 48.3% of GDP, employing 24.4% of the active population (World Bank). Production includes petroleum, petrochemicals, aluminium, iron, steel, food processing, textiles, handicrafts, and cement. 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 in 2022.

Services account for 55.8% of GDP and its share in total employment stands at 59.2% (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. Even though the impacts of the pandemic were felt through the service sector, it wasn't as significantly hit as industry.

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: Mohamed al-Menfi (since 15 March 2021)
Prime Minister: Abdul Hamid Dbeibeh (since 15 March 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 High National Election Commission (HNEC) ordered the dissolution of the electoral committees nationwide, which led to the indefinite postponement of the elections.
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 both elections have also been postponed indefinitely.

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 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 of 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

Republic (in transition).

Executive Power

Previously, the Libyan regime and, in particular, its political and economic system, was based on the Green Book, 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 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 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 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

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the general overview of the key economic policy responses to the COVID-19 pandemic (fiscal, monetary and macroeconomic) undertaken by the government of Libya, please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.