page_title: Libya
section_title: Economy
hierarchical_section_title: Libya / Economy
caption_attribution_description: English: Libyan pivot irrigation in Al Kufrah, southeast Cyrenaica. Oil wealth has enabled Libya to pursue extravagant projects such as agriculture in the Sahara Desert.
context_page_description: Libya, officially the State of Libya, is a country in the Maghreb region in North Africa, bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad to the south, Niger to the southwest, Algeria to the west, and Tunisia to the northwest. The sovereign state is made of three historical regions: Tripolitania, Fezzan and Cyrenaica. With an area of almost 1.8 million square kilometres, Libya is the fourth largest country in Africa, and is the 16th largest country in the world. Libya has the 10th-largest proven oil reserves of any country in the world. The largest city and capital, Tripoli, is located in western Libya and contains over three million of Libya's seven million people. The second-largest city is Benghazi, which is located in eastern Libya. The Latin name Libya is based on the name of the region west of the Nile used by the Ancient Greeks and Romans for all of North Africa, and was again adopted during the period of Italian colonization beginning in 1911.
  Libya has been inhabited by Berbers since the late Bronze Age as descendants from Iberomaurusian and Capsian cultures.
context_section_description: The Libyan economy depends primarily upon revenues from the oil sector, which account for over half of GDP and 97% of exports. Libya holds the largest proven oil reserves in Africa and is an important contributor to the global supply of light, sweet crude. During 2010, when oil averaged at $80 a barrel, oil production accounted for 54% of GDP. Apart from petroleum, the other natural resources are natural gas and gypsum. The International Monetary Fund estimated Libya's real GDP growth at 122% in 2012 and 16.7% in 2013, after a 60% plunge in 2011.
  The World Bank defines Libya as an 'Upper Middle Income Economy', along with only seven other African countries. Substantial revenues from the energy sector, coupled with a small population, give Libya one of the highest per capita GDPs in Africa. This allowed the Libyan Arab Jamahiriya state to provide an extensive level of social security, particularly in the fields of housing and education.
  Libya faces many structural problems including a lack of institutions, weak governance, and chronic structural unemployment. The economy displays a lack of economic diversification and significant reliance on immigrant labour. Libya has traditionally relied on unsustainably high levels of public sector hiring to create employment. In the mid-2000s, the government employed about 70% of all national employees.
  Unemployment rose from 8% in 2008 to 21% in 2009, according to the census figures. According to an Arab League report, based on data from 2010, unemployment for women stands at 18% while for the figure for men is 21%, making Libya the only Arab country where there are more unemployed men than women. Libya has high levels of social inequality, high rates of youth unemployment and regional economic disparities. Water supply is also a problem, with some 28% of the population not having access to safe drinking water in 2000.
  Libya imports up to 90% of its cereal consumption requirements, and imports of wheat in 2012/13 was estimated at about 1 million tonnes. The 2012 wheat production was estimated at about 200,000 tonnes. The government hopes to increase food production to 800,000 tonnes of cereals by 2020. However, natural and environmental conditions limit Libya's agricultural production potential. Before 1958, agriculture was the country's main source of revenue, making up about 30% of GDP. With the discovery of oil in 1958, the size of the agriculture sector declined rapidly, comprising less than 5% GDP by 2005.
  The country joined OPEC in 1962. Libya is not a WTO member, but negotiations for its accession started in 2004.
  In the early 1980s, Libya was one of the wealthiest countries in the world; its GDP per capita was higher than some developed countries.
  In the early 2000s officials of the Jamahiriya era carried out economic reforms to reintegrate Libya into the global economy. UN sanctions were lifted in September 2003, and Libya announced in December 2003 that it would abandon programs to build weapons of mass destruction. Other steps have included applying for membership of the World Trade Organization, reducing subsidies, and announcing plans for privatization.
  Authorities privatized more than 100 government owned companies after 2003 in industries including oil refining, tourism and real estate, of which 29 were 100% foreign owned. Many international oil companies returned to the country, including oil giants Shell and ExxonMobil. After sanctions were lifted there was a gradual increase of air traffic, and by 2005 there were 1.5 million yearly air travellers. Libya had long been a notoriously difficult country for Western tourists to visit due to stringent visa requirements.
  In 2007 Saif al-Islam Gaddafi, the second-eldest son of Muammar Gaddafi, was involved in a green development project called the Green Mountain Sustainable Development Area, which sought to bring tourism to Cyrene and to preserve Greek ruins in the area.
  In August 2011 it was estimated that it would take at least 10 years to rebuild Libya's infrastructure. Even before the 2011 war, Libya's infrastructure was
caption: Pivot irrigation in Kufra, southeast Cyrenaica
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