IMF calls on Libya to reduce public finance costs.

Washington May 18, 2024, (Lana) the International Monetary Fund (IMF) called on Libya to diversify its economic strategy activities away from hydrocarbons (oil and gas), promote stronger and more inclusive growth led by the private sector, and set a clear economic vision for the country.

The IMF said in its entire report regarding the recent visit of its experts to Libya:

Libya's short- and medium-term economic outlook is dominated by the dynamics of hydrocarbon production. Libya urgently needs a clear economic vision for the future, and the IMF will continue to help the authorities by providing capacity development support in several areas.

The Fund called on the authorities to take advantage of the comparative advantages enjoyed by Libya (its location, land area, natural resources, and easy access to energy and labor) to promote the development of labor-intensive non-oil economic activity... There is a need to develop a plan to increase development spending with the aim of alleviating the bottlenecks that faces growth and reducing fiscal costs associated with increased spending on public sector wages and subsidies.

“The next Article IV mission is expected in the spring of 2025,” the report added.