The conflict in Libya in 2011 had a severe impact on the economy, but the contraction is expected to be temporary. This paper demonstrates that Libya has the potential for a robust diverse and inclusive growth.
The paper highlights that:
- in the short term, the authorities need to balance recurrent spending pressures against the need for fiscal sustainability and prospects for private-sector development
- over the medium term, the main challenge will be reorienting the economy away from hydrocarbon dependence and promoting job creation and inclusive growth