<hdr>The World Factbook 1994: Libya<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> The socialist-oriented economy depends primarily upon revenues from the oil sector, which contributes practically all export earnings and about one-third of GDP. In 1990 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. Windfall revenues from the hike in world oil prices in late 1990 improved the foreign payments position and resulted in a current account surplus through 1992. The nonoil manufacturing and construction sectors, which account for about 20% of GDP, have expanded from processing mostly agricultural products to include petrochemicals, iron, steel, and aluminum. Although agriculture accounts for only 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. The UN sanctions imposed in April 1992 have not yet had a major impact on the economy because Libya's oil revenues generate sufficient foreign exchange that, along with Libya's large currency reserves, sustain food and consumer goods imports as well as equipment for the oil industry and ongoing development projects.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$32 billion (1993 est.)
<item><hi format=bold>National product real growth rate:</hi> 1% (1993 est.)
<item><hi format=bold>National product per capita:</hi> $6,600 (1993 est.)
