Amid unprecedented global economic turmoil, lower oil prices and production constraints, Libya has succeeded in maintaining strong non-oil economic growth, while its external assets have grown to almost $140bn. While nearby countries such as Greece are suffering major macroeconomic problems and concerns over debt, Libya is advancing its economic reform agenda and developing its non-hydrocarbon sector, cushioned by Africa's second largest oil and gas reserves and an absence of any foreign debt.
The strength of Libya's core economic fundamentals and potential must be emphasised, but all the positives and reform initiatives aside, Libya is still recovering from decades of isolation and sanctions. While the country's rehabilitation into the global economy began in earnest with the normalisation of relations in 2005 with long-time foe the US, reintegration has been no easy matter. Other actions, such as the political spat with Switzerland earlier in the year, have also inhibited to some extent, commentators say, the region's aspirations to become a north African version of Dubai and a regional economic hub.
