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2026-09-17T15:17:44.000Z

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Libya's inflation erodes entire salaries

Libya's inflation erodes entire salaries

The article discusses the crisis of poverty and economic fragility in Libya. It highlights that government spending exceeds 70% of the budget on salaries and energy. Despite this, many families suffer from weak purchasing power and declining living standards due to inflation and currency fluctuations. Businessman Hosni Bay emphasized that poverty in Libya is not the result of a scarcity of wealth but is caused by an ineffective model of distributing the public rent, which leads to disparities in household living conditions and a real decline in their ability to meet basic needs. He proposed the establishment of a comprehensive and sophisticated database to identify the most needy families, and the development of a multidimensional economic and social indicator that reflects the true situation of households, including income, support, health status, education, and essential services. This data should be collected continuously. He also stressed the importance of reconnecting national wealth with citizens through a fair distribution system and improving the quality of basic services. He confirmed that low productivity and dependence on imports deepen household fragility, and that cash support should be accompanied by training and financing programs for small projects to enhance the ability to achieve financial independence. Studies have shown that about 50% of children suffer from food poverty, and one-third of the population faces food insecurity, reflecting that the problem is not a lack of wealth but its distribution and access mechanisms.

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