Libya is heading towards one of its most challenging economic years, with 2026 expected to place heavy pressure on public finances, living standards, and state institutions, according to political activist Anas Al-Zaidani.
In a post shared on Facebook, Al-Zaidani warned that 2026 could be “one of the most difficult economic years for Libya” if the current political and institutional deadlock continues. He stressed that the absence of a rapid political solution and the failure to unify state institutions would deepen economic instability and weaken the government’s ability to respond to mounting challenges.
Libya continues to suffer from deep-rooted structural problems that directly affect its economic performance. Institutional division between rival authorities has led to parallel spending, weak oversight, and growing pressure on the state budget. This fragmentation has also undermined confidence in economic management and limited the effectiveness of fiscal and monetary policies.
The country remains heavily dependent on oil revenues, leaving the economy exposed to production disruptions, political disputes, and fluctuations in global energy markets. Any decline in output or delays in exports directly impact public spending, salaries, and subsidies, which millions of Libyans rely on.
At the same time, Libya is grappling with persistent inflation, currency instability, and rising living costs. The erosion of purchasing power has increased pressure on households, while youth unemployment remains high despite the country’s vast natural resources. Weak private sector activity and limited foreign investment continue to restrict job creation and economic diversification.
Public services also remain under strain. Electricity shortages, fuel distribution problems, and deteriorating infrastructure place additional burdens on citizens and businesses, further slowing economic recovery.
Al-Zaidani’s warning reflects growing concern among Libyan observers that without political consensus, institutional unification, and clear economic reforms, 2026 may bring tougher financial conditions. Analysts argue that restoring confidence, improving governance, and ensuring transparent management of public resources are essential to prevent further economic deterioration and protect social stability.
