What is the reality of the high rate of the Libyan economic growth in 2023?
The Eecad platform published statistics of the International Monetary Fund (IMF) forecasts on the higher rate of economic growth in Libya, where the growth rate exceeded about 18%, outperforming its counterparts from other countries in the Arab region.
These statistics came after the IMF resumed its monitoring activities in Libya after a decade-long interruption as a result of political and security unrest in the country.
The IMF report confirms that the high economic growth rates came as a result of the easing of the crisis of halting the export of oil and gas from oil facilities. IMF recommended the executive bodies to have a clear road map that seeks to benefit from financial revenues in the development of all fields.
Libya relies on financial revenues from the oil and gas sectors by more than 95%. That explained why the closure of oil fields and the global sharp decline in oil prices in the past few years led to the economic downturn in the past years.
Libya is the second cheapest country in fuel prices at $0.03 per liter, which shows that this rise is only the result of the resumption of oil production after the crises of the closure of the fields over ten years. It does not constitute any real development in the standard of living of citizens.
The economic growth rate is measured by calculating GDP, which is the value of all goods and services produced within the country, and whether they are sold inside or outside the country. It is measured by comparing the value of GDP for a given period with the period preceding it to determine whether there is economic growth or not.
– The most prominent factors on which economic growth depends:
Human resources, natural resources, technological development, social and political factors, infrastructure
However, Libya does not have any of these resources, except oil and gas. That is the difference between Libya and other countries where economic growth is stable and diversified.
The reasons behind the higher Libyan economic growth can only be explained by the production increase in oil and gas. Production can fall and rise depending on the stability of the political situation in Libya.
This makes the comparison between Libya and countries with economic growth stability unfair. Countries depend on different sources of revenues and have different practices of public spending.
Sources of the allegation:
Sources of verification:
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