Libyan Economy

History of the Libyan Economy

The discovery of hydrocarbons in 1959 transformed the country from an agriculture-based to a modern oil-based economy, one of the most prosperous in Africa. Libya has revived its non-oil economy and has been pursuing cautiously greater private sector participation.

Libyan Industrial Economy

The hydrocarbon sector contributes 95 percent of hard currency earnings and approximately 30% of GDP to the Libyan economy. Agriculture accounts for around five percent of GDP and employing around 18% of the labor force.

Adverse climatic conditions and poor soil have severely constrained agricultural production, forcing heavy reliance on food imports. The non-oil manufacturing, construction sectors, and processing (mostly agricultural products) sectors have now extended to petrochemicals, iron, steel, and aluminum.

Libya has embarked on a number of economic plans with the aim of diversification of the oil-based economy into other sectors, including tourism.