IMF sees Libya’s GDP rebound in ’25

The International Monetary Fund (IMF) projects Libya’s GDP to rebound in 2025, driven by a recovery in oil production, following a downward revision for 2024 due to earlier disruptions. The medium-term outlook remains stable, but risks such as declining oil prices and political tensions could constrain fiscal space.

An IMF staff mission to Tunisia discussed Libya’s economic challenges, highlighting the need for an approved unified 2025 budget to improve resource management and avoid pro-cyclical spending.

The IMF welcomed progress in resolving the leadership dispute at the Central Bank of Libya (CBL), enabling enhanced governance and stability. The CBL’s measures, including reducing the foreign exchange (FX) tax and narrowing the gap between official and parallel exchange rates, were commended.

The IMF emphasised the importance of structural reforms, particularly in subsidy management and governance. Energy subsidies, consuming 20 per cent of GDP, require targeted reforms to enable productive sector investment. The IMF pledged continued support for capacity development in tax policy, monetary policy, and data systems to bolster Libya’s economic resilience.

Attribution: IMF

Subediting: M. S. Salama