Libya: economic growth has exceeded 100% in 2012

Economic growth in Libya has exceeded 100% in 2012, driven by the recovery in oil production was almost at a standstill during the conflict of 2011, according to a report the International Monetary Fund (IMF) which AFP has obtained a copy Thursday. “In 2012 the economic growth has exceeded 100%, reflecting a strong recovery from its collapse during the revolution” that toppled the regime of Muammar Gaddafi in 2011, the IMF said after a mission which visited from February 20 to March 7, 2013 in Libya. A report on the economic situation in 2011 released this week by the Central Bank of Libya (BCl), reported negative growth in Gross Domestic Product (GDP) to -61.3% against 3% in BCL 2010.La explains this recession by falling 72% of revenues pétroliers.Selon this report, “recent indicators point to a recovery of hydrocarbon production this year (2013) and a full recovery of growth in the non-hydrocarbon sector should achieve an average of 15% between 2013 and 2018. “The Libyan economy is heavily dependent on oil and gas production, which account for over 80% of GDP and 97% of exports.” Inflation fell to 6% in 2012, and a further decline is expected this year, “wrote the head of the IMF mission, Ralph Chami.L inflation reached a record 15.9% in 2011 against 2.4 in 2010, according to BCL.Pour Chami, lifting in December 2011 from most UN sanctions which froze Libya’s foreign assets, favored normalization of the financial situation of pays.Mais to the IMF, authorities face of “short-term challenges for the management of the political transition, the normalization of the security situation, (…) and fiscal discipline while maintaining macroeconomic stability.” According to the report, Libya must reduce “significant” unemployment, creating an environment conducive to private sector development and diversification of the economy.

Source: AFP