Libyan economic loss in 10 years reached $600 billion, World Bank says 

A World Bank report released this week estimated that Libya’s economy suffered losses amounting to $600 billion over the past decade, calculated at 2015 constant values. These staggering losses underscore the severe impact of prolonged conflict and political instability on the nation’s economic potential. The report highlighted that without these disruptions, Libya could have achieved a 74% increase in local production in 2023 alone.

Despite these challenges, the report offered a cautiously optimistic outlook for Libya’s vital oil sector. It forecasted a recovery in oil production to 1.2 million barrels per day in 2025, rising to 1.3 million barrels per day by 2026. This resurgence is expected to drive robust GDP growth, projected at 9.6% in 2025 and 8.4% in 2026.

The non-oil economy is also poised for significant expansion, with projected growth rates of 9% during 2025–2026. Furthermore, the report anticipated surpluses in public finances and external balances, estimated at 1.7% and 1.4% of GDP, respectively. These improvements stem from reduced public spending and lower imports, even as oil revenues face a decline in 2024.

The World Bank classified Libya as a middle-income country with a gross national income (GNI) per capita of $7,570 in 2023. It emphasized Libya’s untapped potential to generate high-value job opportunities and improve development indicators. To achieve this, the report recommended prioritizing diversification into non-oil sectors and fostering private sector-led growth.

The findings highlight the urgent need for structural reforms and investments to stabilize Libya’s economy and rebuild its institutions. By reducing its reliance on oil revenues, encouraging private enterprise, and addressing systemic challenges in governance, Libya could chart a more sustainable development path and secure long-term economic resilience.