Libyan economy will be slow to recover

Subject

The prospects for the Libyan economy.

Significance

Prior to 2011, Libya's oil and gas wealth and its proximity to Europe drew major energy companies and provided large business opportunities in other sectors. The conflict in 2011 and collapse of the government led many foreign companies to freeze their activities in the country. The political crisis and conflict since 2014 have compounded business and economic difficulties, with the rival political blocs also competing for control of public finances and national institutions and companies.

Impacts

• Demand for migrant workers in Libya will remain steady.
• Infrastructure spending is unlikely to return to pre-2011 levels before 2017.
• Growth and investment will be concentrated in the private sector.