Libya witnesses positive economic indicators, budget deficit to drop to 0%

Libya witnesses positive economic indicators in the current fiscal year as the budget deficit is expected to drop to 0 percent, oil production is improving, and inflation rate is decreasing, said the Governor of Libya’s Central Bank, Saddek el-Kaber earlier this week.

On the sidelines of the Libyan British Business Council (LBBC)’s event hosted in Tunisia Oct. 22-23, Kaber expected that a balance of payment deficit will be wiped out in the current fiscal year.

Entitled “Building Bridges Together,” the event was attended by business representatives from Libya and the U.K. Kaber, Deputy Head of Libya’s Presidency Council Ahmed Maetig, and British ambassador to Tripoli Frank Baker.

Kaber said the revenue from Libya’s oil production is growing, and Libya’s dinar value started to recover in a parallel market, hoping to see a significant increase in the coming weeks.

He remarked that documentary credits are continually granted for the supply of goods to support the private sector. The Central Bank also supports state institutions including oil and electricity institutions to improve service quality provided to citizens.

The World Bank (WB) said in April 2018 that Libya’s economic growth is projected to rebound at around 15 percent in 2018 and 7.6 percent in 2019-2020.

“Both the fiscal and current account balances will significantly improve, with the budget and the current account running surpluses expected from 2020 onwards. Foreign reserves will also start building up by 2020. They will average US$72.5 billion during 2018-2020, representing the equivalent of 27.5 months of imports,” according to the World Bank.

Meanwhile, Libyan oil fields will be provided with further services and security to enhance their production, according to a Sunday meeting between the heads of the Presidency Council of the Government of National Accord (GNA) and the National Oil Corporation (NOC).

Prime Minister of GNA Faiez Sarraj and Chairman of NOC Mustafa Sanallah underscored in the meeting the importance of securing ports and oil fields to maintain production and exportation, as well as managing oil derivatives properly and reducing any adverse environmental impact of the process.

That comes as oil revenues in Libya reached their highest levels in 2018, estimated at $13.6 billion, NOC announced in September, expecting the figure to rise to $23.4 billion by the end of the year “if the corporation was able to continue doing its work without any impediments.”

Libya’s crude oil production exceeded one million barrels per day in September, compared to 950,000 barrels per day in August, according to the Organization of Petroleum Exporting Countries (OPEC). Before Muammar Gaddafi’s ouster, Libya produced 1.6 barrel per day, but the lack of the security has led to reduction in oil production.

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