Economy (Libya)
===============


     Overview:
         The socialist-oriented economy depends primarily upon revenues from the oil
         sector, which contributes practically all export earnings and about
         one-third of GDP. Since 1980, however, the sharp drop in oil prices and the
         resulting decline in export revenues have adversely affected economic
         development. In 1988 per capita GDP was the highest in Africa at $5,410, but
         GDP growth rates have slowed and fluctuate sharply in response to changes in
         the world oil market. Import restrictions and inefficient resource
         allocations have led to shortages of basic goods and foodstuffs, although
         the reopening of the Libyan-Tunisian border in April 1988 and the
         Libyan-Egyptian border in December 1989 have somewhat eased shortages.
         Austerity budgets and a lack of trained technicians have undermined the
         government's ability to implement a number of planned infrastructure
         development projects. Windfall revenues from the hike in world oil prices in
         late 1990 improved the foreign payments position and resulted in a current
         account surplus for the first time in five years. The nonoil manufacturing
         and construction sectors, which account for about 22% of GDP, have expanded
         from processing mostly agricultural products to include petrochemicals,
         iron, steel, and aluminum. Although agriculture accounts for about 5% of
         GDP, it employs about 20% of the labor force. Climatic conditions and poor
         soils severely limit farm output, and Libya imports about 75% of its food
         requirements.
     GDP:
         exchange rate conversion - $28.9 billion, per capita $6,800; real growth
         rate 9% (1990 est.)
     Inflation rate (consumer prices):
         7% (1991 est.)
     Unemployment rate:
         2% (1988 est.)
     Budget:
         revenues $8.1 billion; expenditures $9.8 billion, including capital
         expenditures of $3.1 billion (1989 est.)
     Exports:
         $11 billion (f.o.b., 1990 est.)
       commodities:
         petroleum, peanuts, hides
       partners:
         Italy, USSR, Germany, Spain, France, Belgium/Luxembourg, Turkey
     Imports:
         $7.6 billion (f.o.b., 1990 est.)
       commodities:
         machinery, transport equipment, food, manufactured goods
       partners:
         Italy, USSR, Germany, UK, Japan
     External debt:
         $3.5 billion, excluding military debt (1991 est.)
     Industrial production:
         growth rate - 4%; accounts for 22% of GDP (not including oil) (1989)
     Electricity:
         4,700,000 kW capacity; 13,700 million kWh produced, 3,100 kWh per capita
         (1991)
     Industries:
         petroleum, food processing, textiles, handicrafts, cement
     Agriculture:
         5% of GNP; cash crops - wheat, barley, olives, dates, citrus fruits,
         peanuts; 75% of food is imported
     Economic aid:
         Western (non-US) countries, ODA and OOF bilateral commitments (1970-87),
         $242 million; no longer a recipient