The International Monetary Fund (IMF) said that the recovery in oil production in Libya contributed to adjusting the country's GDP growth forecasts for next year. IMF expected in a report following the conclusion of its delegation's visit to Libya that the country would record an increase in GDP growth during 2025, noting that it remains largely unchanged in the medium term, given that GDP growth and the external balance are expected to decline in 2024.
IMF added that these forecasts may be subject to a number of negative risks, including lower than expected oil prices and renewed political tensions, which would limit the available fiscal space, calling on the Libyan authorities to agree on spending priorities through an approved unified budget for 2025, as it would help avoid pro-cyclical spending and improve the management of Libya's resources.
IMF reaffirmed its support for the efforts of the Central Bank of Libya to facilitate access to foreign exchange and alleviate the shortage of local currency by injecting liquidity into the banking system and expanding electronic payment services. It welcomed the continued progress in strengthening banking sector governance in the context of combating money laundering and terrorist financing, improving data collection, and encouraging innovation in the field of financial technology.
IMF expressed its commitment to provide the necessary capacity development in these and other areas as needed to develop capacities in the areas of tax policy, budget preparation, revenue management, consumer price indices, reserve management, and monetary policy.
