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Libya's socialist-oriented economy depends primarily upon revenues from the petroleum sector, which contributes practically all export earnings and about one-quarter of GDP. These oil revenues and a small population give Libya one of the highest per capita GDPs in Africa. Since the year 2000, Libya has recorded favourable growth rates with an estimated 8.5% growth of GDP in 2005.

Contents 1 Macro-economic trend 2 Oil 3 Non-oil sector 4 Statistics 5 References 6 External links

The GDP per capita of Libya soared by 676% in the 1960s and a further 480% in the 1970s. However such fantastic growth rates proved unsustainable in the face of global oil recession and international sanctions. Consequently the GDP per capita shrank by 42% in the 1980s. Successful diversification and integration into the international community helped current GDP per capita to cut further deterioration to just 3.2% in the 1990s.

Below is a chart of trend of gross domestic product of Libya at market prices estimated by the International Monetary Fund with figures in millions of Libyan dinars (LYD).

Year	GDP	USD to LYD	Inflation Index (2000 = 100%)
1980	10,882	0.29 LYD	25
1985	8,227	0.29 LYD	45
1990	8,185	0.28 LYD	57
1995	10,679	0.34 LYD	89
2000	17,668	0.51 LYD	100
2005	50,693	1.22 LYD	80

For purchasing power parity comparisons, the US Dollar is exchanged at 0.77 Libyan Dinars only.

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. Despite the country's relatively high per capita GDP, 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.

Although United Nations sanctions were suspended in 1999, foreign investment in the Libyan gas and oil sectors were 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).

As of May 2006, The United States has removed Libya from its list of states that sponsor terrorism and has normalised ties and removed sanctions. This clears the road for U.S. oil companies to exploit Libyan oil and is expected to have a positive impact on the Libyan economy. [1]

The non-oil manufacturing and construction sectors, which account for about 20% of GDP, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminium. Following the suspension of UN sanctions in 1999, Libya has been trying to increase its attractiveness to foreign investors, and several foreign companies have visited in search of contracts.

Although agriculture is the second-largest sector in the economy, Libya depends on imports in most foods. Climatic conditions and poor soils severely limit farm output, and domestic food production meets only about 25% of demand. Domestic conditions limit output, while higher incomes and a growing population have caused food consumption to rise. Because of low rainfall levels in Libya, agricultural projects such as the Al Khufrah Oasis rely on underground aquifers for water.

GDP: purchasing power parity - $67 billion (2005 est.)

GDP - real growth rate: 8.5% (2005 est.)

GDP - per capita: purchasing power parity - $11,630 (2005 est.)

GDP - composition by sector:
agriculture: 7.6%
industry: 49.9%
services: 42.5% (2005 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): less than 1% (2005 est.)

Labor force: 1.64 million (2005 est.)

Labor force - by occupation: agriculture 17%, industry 23%, services and government 59% (2004 est.)

Unemployment rate: 30% (2004 est.)

Budget:
revenues: $25.34 billion
expenditures: $15.47 billion, including capital expenditures of $5.6 billion (2005 est.)

Industries: petroleum, iron and steel, food processing, textiles, handicrafts, cement

Industrial production growth rate: NA%

Electricity - production: 14.4 billion kWh (2003)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 13.39 billion kWh (2003)

Electricity - exports: 0 kWh (2003)

Electricity - imports: 0 kWh (2003)

Agriculture - products: wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans, cattle, corn

Exports: $30.79 billion (f.o.b., 2005 est.)

Exports - commodities: crude oil, refined petroleum products, natural gas

Exports - partners: Italy 37.2%, Germany 16.6%, Spain 11.8%, Turkey 7.1%, France 6.2% (2004)

Imports: $10.82 billion (f.o.b., 2005 est.)

Imports - commodities: machinery, transport equipment, semi-finished goods, food, consumer products

Imports - partners: Italy 25.2%, Germany 11%, South Korea 6%, UK 5.4%, Tunisia 4.7%, Turkey 4.6% (2004)

Debt - external: $4.267 billion (2005 est.)

Economic aid - recipient: ODA, $4.4 million (2002)

Currency: 1 Libyan dinar (LD) = 1,000 dirhams

Exchange rates: Libyan dinars per US dollar - 1.3084 (2005), 1.305 (2004), 1.2929 (2003), 1.2707 (2002), 0.6051 (2001), 0.4994 (2000), 0.3936 (1999)

Fiscal year: calendar year

• Central Bank Of Libya Economic Bulletin
• Business In Libya | Libya Connected