The economic situation in Libya demonstrated some improvement in 2023, with steps taken to unify the Central Bank, improve electricity and salary services, and boost oil exports. Nevertheless, challenges continue, including the vulnerability of the Libyan dinar against the US dollar, exchange rate manipulation on the black market, and economic fragility. The country confronts issues such as the absence of adequate monetary policy tools, security instability, high inflation and unemployment, and dual budget and current account deficits.
As Libya enters 2024, there are worries about uncontrolled financial spending, high public debt, and the increased demand for foreign currency, leading to a balance of payments deficit and challenges for the general economic indicators. The value of the Libyan dinar has greatly decreased, affecting the poorer segments of the population.
To address these challenges, experts propose increasing oil revenues, directing them towards new investments, controlling financial spending, and setting political stability through an elected government. Further, the country faces natural disaster impacts, such as the aftermath of Storm “Daniel” in the previous year, requiring financing for reconstruction efforts in affected areas.