The Arab Monetary Fund expects the Libyan economy to grow 5% this year and 8% in 2020

Alwasat - Cairo Tue 17 Sep 2019, 05:52 PM
alwasat radio

The Arab Monetary Fund expects economic growth in Libya to rise to 8% in 2020 if the internal situation improves, while it expects growth of about 5% this year, in light of the efforts of the National Oil Corporation to reopen the oil fields.

The report, issued in April, described oil revenues as the main catalyst for economic growth, as 90% of the total revenues funding the general budget. However, the Fund pointed out that "the prediction of levels of economic growth depends largely on developments in prices and production of crude oil in addition to internal developments."

Regarding the general budget for the current year, the report predicted that the level of expenditures will rise to 42 billion dinars, compared to 31 billion dinars  in 2018, in light of the expected increase in oil revenues.

The report pointed out that "the budget is predominantly directed to wages, which account for nearly 50% of total expenditure. Thus, the budget deficit is estimated at about 19 billion dinars which will be financed through borrowing from the Central Bank."

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