The International Monetary Fund (IMF) projects a strong economic rebound for Libya in 2025, driven by a recovery in oil production and ongoing structural reforms. As of December 2024, oil output has returned to 1.4 million barrels per day, supporting positive economic growth.
Following a staff mission from December 2 to 6, the IMF praised Libya for progress in implementing critical economic reforms and addressing fiscal challenges, including efforts to reduce energy subsidies, which currently account for 20% of GDP, and diversify the economy beyond hydrocarbons.
The IMF also commended the Central Bank of Libya (CBL) for addressing currency shortages and improving foreign exchange access. The CBL has injected liquidity into the banking system, expanded electronic payment services, reduced the foreign exchange tax from 27% to 15% and regulated foreign exchange bureau activities.
These measures helped narrow the gap between official and parallel exchange rates from 13% in July to 8% in November. The IMF emphasized the importance of further developing monetary policy tools to ensure the stability of Libya’s foreign exchange market.
