Knowledge Note

"A political resolution is needed to implement the required reforms for a private sector-driven growth and jobs generation."

The Libyan economy has recently been hit by four overlapping shocks: an intensifying conflict that suffocates economic activity, the closure of oil fields that puts the country’s major income-generating activity largely on hold, decreasing oil prices that reduce income from oil production in surviving fields, and the COVID-19 pandemic (with 3,438 confirmed cases and 73 deaths as of August 2020), which threatens to further suppress the economy. A political resolution is needed to implement the required reforms for a private sector-driven growth and jobs generation.