The Arab Monetary Fund (AMF) predicts Libya’s economy will grow by 14.3% in 2025, the highest rate in the Arab world. Growth is expected to slow to 5.9% in 2026, driven largely by the hydrocarbon sector, which accounts for over 95% of state revenues.
Despite this positive outlook, the AMF warned that political instability and weak institutional capacity remain obstacles to structural reforms. Inflation has stayed low, dropping from 2.4% in 2023 to 2.1% in 2024, helped by a stable exchange rate.
The broader Arab economy is forecast to grow by 3.8% in 2025, up from 2.2% in 2024, before reaching 4.3% in 2026. Improved macroeconomic conditions and economic reforms are key drivers.
In a separate development, Libya’s National Oil Corporation (NOC) announced a commercial oil discovery in the Ghadames Basin. Algeria’s Sonatrach made the find, with expected output of 4,200 barrels per day. Libya’s total crude production has now surpassed 1.3 million barrels per day.
