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SSF ; General government operation ; trade protection ; Oil prices. Download PDF Abstract Full Text Related Publications. Abstract This Article IV Consultation highlights that the Libyan economy remains largely state controlled and heavily dependent on the oil sector.
B ackground and R ecent D evelopments A. Background 1. Political Developments 5. After the war the economy rebounded by Libya had seen fantastic growth rate, however these proved unsustainable in the face of global oil recession and international sanctions.
Successful diversification and integration into the international community helped current GDP per capita to cut further deterioration to just 3. In alone, per capita GDP rose by 42 percent. Oil revenues constitute the principal foreign exchange source. This section contains economy and business opportunities and from Libya. GT E-Special. Search Tenders. Tender Microsites. Popular Sectors. A recent array of negotiations and agreements foresees a way forward after a decade of military conflict and political strife.
The breakthrough was achieved through the Libyan Political Dialogue Forum, a meeting of 75 Libyan delegates held in Tunisia, with a threemember Presidency Council headed by Mohamed al-Mnefi and a Prime Minister, Abdelhamid Dabeiba, tasked with forming a Government of National Unity, that will in turn prepare Libya for general elections. In addition to these developments, several economic agreements have also come into fruition.
There is reason for cautious optimism for recovery and healing, but downside risks abound. The ceasefire agreement of October stipulated that all military units and armed groups withdraw from the front lines, with foreign fighters and mercenaries transferred to Tripoli and Benghazi before leaving Libya by January 23, However, the underlying political and economic division of the country has complex roots and competing international influences can make a difference in outcomes.
With major uncertainties associated with these dynamics, projecting future economic trends is a daunting task. However, if the current rapprochement remains on track, a significant economic recovery from the slump is within reach in In light of major maintenance problems that will limit oil production, a 1. As a result, GDP growth is forecast at 67 percent in in real terms. The agenda for social policy, institutional reform, and public action is full and needs urgent attention.
In addition to the conflict-driven challenges and neglect, Libyans are also increasingly affected by the COVID pandemic. With relaxation of containment measures, the spread of the virus has accelerated. This problem is probably under-monitored and compounded by an incapacitated health sector. More than one in three health facilities in Benghazi and one in six in Tripoli were damaged or destroyed, and nearly 20 percent were closed.
Surviving health centers face critical gaps in medicines and supplies, as well as a loss of health workers, many of whom were from overseas and have fled amid the violence.
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