The International Monetary Fund (IMF) says the growth prospects for Libya's economy will remain fixed with oil and gas production over coming years, in a concluding statement following the IMF staff consultation on Libya in Tunis during March 11-17.
According to the mission, Hydrocarbon production is projected to grow by around 15 percent in 2023 following an increase in oil production from one million barrels per day in 2022 to around 1.2 million barrels per day in 2023 and increase gradually thereafter.
The IMF stressed the need for an urgent clear national economic vision and to focus on strengthening institutions and developing a more purposeful and transparent economic strategy for the future.
However, it said the challenge for Libya lies in striking a balance between fostering stronger and inclusive private sector-led growth and reducing reliance on hydrocarbons in light of the rapid global shift towards clean energy technology.
The mission lauded the "institutional framework's" role in helping the country through a period of "significant macroeconomic volatility and turmoil."
"The measures taken by the Central Bank of Libya, including the currency’s devaluation, helped maintain a large stock of international reserves. Looking ahead, the stability of the exchange rate will remain an important anchor for monetary policy," the one-page statement said.
It explained that the unrest that followed the fall of Gaddafi in 2011 effectively suspended the production of key economic indicators and complicated policy-making, noting at the same time the progress made by the state towards data collection, sharing, and transparency.
Earlier, the IMF cautioned of some daunting challenges Libya would face amid the tense political situation and the break-up of state institutions in light of other social challenges.
In a report last year, the mission speculated positive indicators for Libya's economy, in terms of growth and inflation during 2023, driven by the high global oil prices.