Libya’s economy is at risk of collapse as civil war disrupts the country’s main source of income, oil production, warns the World Bank.
âWith oil production at only one-fifth of potential, revenues have plummeted, pushing budget and current account deficits to record levels. With the dinar rapidly losing value, inflation accelerated, further eroding real incomes, âthe report said, according to RT.
Due to falling crude prices and low production, Libya’s foreign reserves have grown from $ 107.6 billion in 2013 to $ 43 billion by the end of this year, he said. he adds.
RT also reported that in the first half of 2016, the country managed to produce an average of 335,000 barrels per day, down 20% from last year. Libya’s daily oil production before the 2011 uprising was 1.6 million barrels.
The Libyan economy has shrunk by about 8.3%, leaving the country in recession since 2013, with GDP per capita falling almost two-thirds of its pre-revolution level, according to the bank, the bank wrote on Tuesday. RT website.
He added that in the first seven months of 2016, Libyan state revenues of 3.2 billion dinars ($ 2.28 billion) were only a tenth of what they were during from the same period last year. The Libyan dinar has fallen 73 percent against the dollar on the black market.
The budget deficit remained high at 69% of GDP. “While the central government was a net lender before the revolution, the domestic debt has since increased rapidly to reach a peak of 110% of the GDP in 2016”, reports the WB stressing that the deficit was financed mainly by loans from the Central Bank of Libya, RT continued.
Adding that the continued shortages have meant that food prices rose 31 percent in the first half of the year, according to World Bank calculations. “Headline inflation jumped to 24% over the same period,” the report says. Inflation is expected to average 20 percent this year.
âWages also fell 8.7%, reflecting efforts to remove duplicate payments from the government payroll by expanding and enforcing the use of the national ID number,â the Bank report says. global.