Libya profile

Demography and Health

Libya’s population stands at about 7.38 million in 2024, placing the country in the middle range of global population counts while underscoring a youthful demographic profile typical of many Arab-African economies. The birth rate is 17.0 births per 1,000 people (2023), and the crude death rate is 6.65 per 1,000, indicating ongoing natural growth and a potentially large cohort entering working ages in the near term if health and education systems scale appropriately. Life expectancy at birth is 69.3 years (2023), signaling that health outcomes are improving relative to deep past shocks but still short of global benchmarks, with room for gains in maternal and child health, nutrition, and chronic disease management. The under-5 mortality rate is 30.8 per 1,000 live births (2023), highlighting persistent child health and nutrition challenges that can affect human capital development unless addressed with targeted health and social interventions. Net migration is modest at 3,448 people (2024), suggesting only limited impact on the labor force from migration, though even small flows can influence urban dynamics and skill composition. Internet access remains high, with 88.5% of the population using the Internet in 2023, signaling strong digital connectivity that can support health education, telemedicine, and information dissemination, provided reliable electricity and user-friendly platforms accompany this access. The country faces water and nutrition stress, with the level of water stress indicated at 817.0 (2021), ranking 4th in the world on this metric, underscoring significant water resource constraints that intersect with health, agriculture, and sanitation. The prevalence of undernourishment was 11.4% of the population in 2022, pointing to ongoing food security concerns that can undermine growth, development, and resilience in communities. Healthcare capacity shows a relatively lean base: hospital beds total 3.2 per 1,000 people (2021), and current health expenditure accounts for 4.65% of GDP (2022), with per-capita health spending in purchasing power parity terms around 656 international dollars (PPP, 2022). These indicators collectively suggest that while digital access and basic health indicators are improving, Libya faces substantial constraints in health workforce capacity, service delivery, and nutrition security, all of which are more challenging in a context of governance weaknesses and volatility. Subtle yet important mental health, suicide mortality (5.0 per 100,000, 2021), and other social indicators reflect the broader health and well-being challenges that will shape human capital outcomes in the years ahead. A more resilient health system will likely require greater public expenditure, improved efficiency, and enhanced water and food security to convert demographic potential into sustained development.

Economy

Libya presents an economy with a high degree of openness to trade relative to its GDP structure, evidenced by exports of goods and services equal to 74.8% of GDP in 2024 and imports representing 59.1% of GDP in the same year. Such figures point to a substantial role for external markets in supporting domestic activity, with the economy likely leveraging natural resource revenues to fund spending and investment. GDP per capita is 6,318 current US dollars in 2024, and GDP per capita at purchasing power parity stands at 13,954 international dollars, suggesting a modest income level when measured against global peers but with potential for progress if macro stability and diversification improve. Inflation runs at a relatively modest 2.13% in 2024, implying price stability that can support consumer confidence and investment planning, though sequences of price stability can be fragile in a conflict-affected and transitionary economy. External income and capital flows are mixed: current account balance stands at 4.13% of GDP in 2023, indicating a positive external balance, while foreign direct investment net inflows amount to 1.76% of GDP in 2023, reflecting moderate but not robust investor confidence. Total greenhouse gas emissions per capita are 13.1 tonnes of CO2 equivalent (2023), and renewable energy accounts for only 3.1% of total final energy consumption in 2021, underscoring a heavy reliance on fossil-based energy and limited diversification into low-carbon sources. The economic landscape also shows health spending and productivity dynamics: current health expenditure is 4.65% of GDP (2022), and domestic general government health expenditure per capita, PPP, is 656 international dollars (2022), illustrating limited domestic funding for health relative to income levels and highlighting areas for efficiency gains and prioritization. Taken together, Libya’s economy combines significant export intensity with vulnerabilities tied to governance challenges, social disruption, and under-diversification, which can amplify exposure to commodity price swings and policy volatility. The path forward will likely hinge on stabilizing institutions, widening fiscal space for public investment, and gradually broadening the productive base beyond resource-driven sectors.

Trade and Investment

Trade and investment dynamics in Libya reflect a country with strong export orientation but still constrained by governance and infrastructure issues. The exports share of GDP at 74.8% (2024) signals a heavy reliance on external markets for foreign earnings, consistent with resource-based export activity. The corresponding imports share of GDP at 59.1% (2024) indicates sustained engagement with global supply chains to meet domestic demand, which, in turn, creates sensitivity to exchange rate movements and import costs. The current account balance of 4.13% of GDP (2023) suggests a positive external position, providing some buffering for external shocks but also implying dependence on export revenues. Foreign direct investment net inflows are 1.76% of GDP (2023), which points to a modest level of investment inflows; this level may reflect governance risk, security concerns, and perceived policy continuity, all of which affect investors’ willingness to deploy capital. The Logistics Performance Index, which measures quality of trade and transport-related infrastructure, stands at 1.7 (2022) on a 1–5 scale, indicating relatively weak logistical competitiveness and substantial room for improvement in port handling, customs, and transport networks. This infrastructure gap compounds the cost of trade and can deter diversification and export growth. Overall, Libya’s trade and investment profile highlights opportunities linked to resource-based exports and potential for efficiency gains from improved logistics, but it requires credible reforms to governance, rule of law, and institutional stability to attract larger and more diverse investment inflows.

Governance and Institutions

Libya faces pronounced governance and institutional challenges, with several indicators signaling weakness in state capacity and policy effectiveness. Political stability and absence of violence/terrorism score is -2.17 (2023) with a high rank value of 190, reflecting persistent security concerns and political fragility that constrain policy continuity, public service delivery, and investor confidence. Regulatory quality is -1.95 (2023, rank 196), and the rule of law is -1.77 (2023, rank 197), indicating difficulties in creating predictable regulatory environments and upholding laws across the country. Control of corruption is -1.53 (2023, rank 190) and government effectiveness is -1.64 (2023, rank 189), pointing to governance weaknesses, weak public institutions, and limited government responsiveness. These indicators collectively suggest that even where macroeconomic fundamentals appear stable, structural reforms, transparency, and accountability are essential to unlock investment, improve public services, and reduce policy risk. The combination of weak governance and a high logistics cost environment (1.7 on the 1–5 scale) implies that improving governance could have multiplicative effects on trade efficiency, investment climate, and service delivery. While some indicators show that the business environment understates risk in certain areas (for example inflation at 2.13%), the overarching narrative is that governance reforms, anticorruption measures, and stronger rule of law will be central to sustainable growth and social stability.

Infrastructure and Technology

Infrastructure and technology in Libya reveal a mix of strong connectivity and substantial constraints. The country reports 88.5% Internet usage among the population in 2023, indicating widespread digital access that can enable e-government services, online commerce, and digital education. This penetrates the social fabric and has the potential to transform service delivery and innovation if complemented by reliable electricity and digital literacy programs. Hospital capacity, at 3.2 hospital beds per 1,000 people in 2021, demonstrates a relatively lean health infrastructure that can constrain service provision, emergency readiness, and specialized care, especially outside major urban centers. The Logistics Performance Index score of 1.7 (2022) again underscores infrastructure bottlenecks—ports, roads, and customs processes—that raise trade costs and limit the speed of value chain flows. Renewable energy remains a small share of energy consumption, at 3.1% in 2021, highlighting a significant opportunity for diversification toward more sustainable and potentially cheaper electricity generation in the long run. Domestic general government health expenditure per capita, PPP, is 656 international dollars (2022), suggesting limited government prioritization of health relative to the population’s needs, even as digital tools and connectivity offer channels to improve service delivery. Overall, Libya has a solid digital footprint relative to many peers, but infrastructure gaps—especially in health, energy diversification, and transport—need targeted investment and governance reforms to translate connectivity into productivity and resilience.

Environment and Sustainability

Environmental and sustainability indicators for Libya reveal notable resource pressures and climate-related vulnerabilities. The level of water stress, measured as freshwater withdrawals relative to available resources, is reported at 817.0 (2021) with a rank of 4, signaling extremely high pressure on water resources and a risk that water scarcity could constrain agriculture, health, and human development, particularly in arid and urban areas. Total greenhouse gas emissions per capita are 13.1 tonnes of CO2 equivalent (2023), indicating a high carbon intensity that aligns with heavy fossil energy use and limited emissions abatement pathways. Renewable energy accounts for 3.1% of total final energy consumption (2021), reflecting a heavy reliance on conventional energy sources and signaling substantial room for decarbonization and resilience-building, especially in electricity generation and urban planning. The prevalence of undernourishment at 11.4% (2022) further highlights the link between environmental stress, nutrition, and development outcomes. Taken together, Libya’s environmental indicators point to acute water scarcity, high emissions intensity, and considerable opportunities to advance sustainable energy, water management, and climate-resilient development, all of which require coherent policy frameworks, investment in infrastructure, and stronger governance to align environmental stewardship with social and economic objectives.