Future outlook for Libyan economy
Economic expert Nadhim Al-Tayari warned of the escalating risks posed by the widening gap between Libya's revenues and public spending. He pointed out that current expenditures have exceeded $20 billion, while revenues stand at only $15 billion—a situation he considers an economic crime and a recklessness that threatens the sustainability of the economy. He noted that the Central Bank of Libya is using part of its foreign reserves to cover the deficit, trying to keep the dollar exchange rate between 9 and 10 dinars, with the capacity to reduce it to between 2 and 3 dinars. However, this approach will not be sustainable if expenses continue at the same level, potentially depleting reserves within two years and leading to the bank’s collapse, with the dollar value soaring to over 30 dinars. Al-Tayari called for austerity measures, curbing extravagance, unifying the budget, and national efforts to resolve the economic situation, amidst a backdrop of financial and institutional divisions within the country.
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