When the first drillings were carried out in Libya in 1956, they probably did not think that the country owns almost 40 percent of the recoverable crude oil on the African continent, i.e. they have one of the largest oil reserves on the continent.
As time progresses two-thirds of the country’s GDP comes exclusively from crude oil, black gold accounts for more than 95% of its exports, which it sells mostly to Italy, Spain, Germany, China and the United States.
Roman ruins in Libya (Photo: András Halász)
The country has been completely dependent on the oil industry for several decades, the development of the demand for oil and the movement of oil prices can be traced to the development of the Libyan GDP,but in addition to crude oil, it also exports petroleum gas, refined petroleum, and gold.
Based on this, it could be one of the most livable countries in the region. Comparing the GDP per capita of the nations of the region, it is clear that Libya performs exceptionally economically. This year, GDP per capita (calculated at purchasing power parity) may increase to $26,527, making Libya the richest country on the African continent, according to IMF estimates.
A Christmas tree is also available at one of the local markets (Photo: András Halász)
In terms of GDP per capita, the difference compared to Egypt is 40 percent, and compared to Tunisia it is 90 percent – in favor of Libya, which is mainly due to the low population (6.9 million people).
The IMF’s country report highlights that Libya also has huge foreign exchange reserves, exceeding 200 hundredths of GDP.
The central bank’s foreign exchange reserves as a proportion of GDP (IMF)
Due to the tightening of foreign currency exports, it was possible to survive the previous drop in oil prices and oil production losses due to the war thanks to high stocks.
Despite this, the country is still unlivable due to the continuous conflicts and civil wars that have been going on for 13 years, and in the south there is complete chaos – arms and drug trafficking, human trafficking, etc. because of According to IMF estimates, economic growth of 7.8 percent is expected this year – obviously due to the increase in demand for oil and high oil prices.
Development of GDP change (in red) and inflation (in blue) (source: IMF)
The political situation of Libya is extremely complex: the two civil wars that have passed since the overthrow of Muammar Gaddafi, who ruled as dictator for 42 years in 2011, were defining events in the history of the country and the region.
The ruins of Gaddafi’s former palace (Photo: András Halász)
In the absence of a strong central government, the support of various armed groups and militias from outside the borders caused significant shifts in the local balance of power, which are still hindering the peace process today.
Due to the conflicts also taking place at the tribal level, Libya has become one of the continent’s largest weapons depots, and many mercenaries have also arrived in the country in the past decade: from Turkey, Syria, Russia and France.
The rise of the Islamic State has been prevented so far, but in 2014-15 they managed to establish serious positions in some areas of the country.
A transitional government currently governs Libya, but only a part of the country is actually under control: therefore, on the whole, the governance can neither be said to be national (even the nation formation process did not take place completely in Libya) nor uniform.
English military cemetery in Libya (Photo: András Halász)
The ongoing conflicts seriously affect the situation of society and everyday life: there is no organized public transport, there are many illegal weapons, public safety is poor, there are frequent power outages, and the water supply is not resolved.
According to Human Rights Watch, last year approximately 170,000 local residents were forced to leave their homes due to the destruction of cities, lack of public services, and severe natural disasters.
(Photo: András Halász)
In addition to the highly deficient public safety, the country also has extremely poor health care and public transportation.
Based on these, it is understandable that many people try to leave the country, but it means an even greater number of peoplemany people use Libya as a transit stop – because of the barely guarded coasts.Based on data from the UN’s International Organization for Migration (IOM), 947 people were found dead and more than 1,256 people went missing between January and November 2023. The situation in Libya remains bleak.
Archaeological site of Szabrátha in Libya (Photo: András Halász)
The country is rich in ancient sights, but due to poor public security, the Hungarian Ministry of Foreign Affairs also believes that Libya is not recommended for travel.
