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Libya Set to Record Fastest Economic Growth in Arab World

August 17, 2025
Libya Set to Record Fastest Economic Growth in Arab World
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Libya is projected to lead the Arab world in economic growth in 2025, according to the latest estimates from the International Monetary Fund (IMF). The IMF expects Libya’s gross domestic product (GDP) to expand by 17.3%, the highest growth rate among Arab countries.

These projections are consistent with forecasts by the Arab Monetary Fund, which estimated that the Libyan economy will grow by around 14.3% next year, once again ranking it first among Arab economies in terms of growth pace.

International media outlets, including CNN Business, also highlighted Libya’s position at the top of the list of fastest-growing Arab economies in 2025. Libya’s projected growth far outpaces that of Djibouti (6%), Mauritania (4.4%), the UAE (4%), Somalia (4%), Morocco (3.9%), Egypt (3.8%), Algeria (3.5%), Saudi Arabia (3%), and Bahrain (2.8%).

The robust growth outlook is largely driven by expectations of stable oil production levels, improving economic conditions, and ongoing reconstruction and development plans. These factors present significant opportunities to strengthen Libya’s economic and social stability in the coming years.

The accelerated growth further reflects positive indicators tied to Libya’s oil sector stability, an improving investment climate, and continued efforts to enhance infrastructure and expand economic activity across multiple sectors.

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