Libya joined the African Development Bank Group in 1972 and has since become one of its leading shareholders. On the political front, the country in 2008 began a process of renewal with a thorough overhaul and restructuring of the government system following the People’s Congress held in March 2008.

Real GDP was expected to rise by more than 7 per cent in 2008 after reaching 6.8 per cent in 2007. However, Libya still faces challenges linked to the duality of its economy. While the hydrocarbon sector allows the country to accumulate large amounts of capital, there are inadequate linkages between the petroleum and non-petroleum sectors.

Development Policy

Hydrocarbons accounted for more than 13.6 percent of the growth in the country's exports and there were concerns that the economic slowdown in Europe could slow down demand and lower prices. This could pose challenges in funding the large construction schemes  launched to stimulate the country's economy. Worthy of note is Libya’s recently launched US$84 billion infrastructure programme. With the labour force increasing at a yearly rate of 3.5 to 4 per cent, the generation of employment was also a concern. Unemployment, according to official sources, was expected to reach 10 per cent in 2008.