Libya to lead Arab countries in economic growth by 2025, IMF forecasts

The International Monetary Fund (IMF) has projected that Libya will lead the Arab world in economic growth by 2025, anticipating an impressive growth rate of 13.7%.

According to a recent report from the IMF, Libya’s economic growth is expected to escalate from a modest 2.4% in 2023 to this remarkable figure in 2025, positioning the country at the forefront of growth expectations within the Middle East and North Africa (MENA) region.

This optimistic outlook is largely attributed to the recovery of Libya’s oil sector, which is critical for the nation’s economy. The IMF noted that the anticipated growth will be further bolstered by the successful efforts of Libyan stakeholders to resolve a prolonged crisis within the Central Bank. Such resolutions are crucial, as they pave the way for more stable financial operations and investment in the country.

Despite this positive growth forecast, the IMF cautioned about Libya’s heavy reliance on its oil and gas resources, emphasizing the urgent need for a comprehensive national economic strategy that goes beyond hydrocarbons. Currently, the oil and gas sector constitutes approximately 60% of Libya’s gross domestic product (GDP), accounts for 94% of its exports, and provides a staggering 97% of government revenues, as reported by the World Bank in 2023.

The IMF’s insights highlight not only the potential for significant economic growth in Libya but also the critical importance of diversifying the economy to ensure sustainable development and resilience against future economic fluctuations. As Libya moves towards this growth trajectory, establishing a clear economic vision will be essential for fostering broader economic stability and growth in the years to come.