Former Libyan leader Muammar Gaddafi, who was captured and killed by rebels on Oct. 20, left behind a dysfunctional, one-note, state-dominated economy. But it's a high note--oil. That one industry could finance Libya's economic turnaround relatively quickly. On the negative side, the country has no private companies, and nearly a third of people under 25 are unemployed. But Libya is one of the richest nations in the region, with a well-educated workforce. That combination could underwrite a growing middle class and a consumer economy that will diversify Libya away from energy. Harvard professor Michael Porter, who did a study of the economy for the government in 2006, says that Libya needs to pull off a major restructuring but has the assets to do it. And without Gaddafi, it has the will as well.
[The following text appears within 4 charts. Please see hardcopy or PDF for actual charts.]
Libya's economy is troubled ...
Projected GDP decline in 2011
56% THE WAR HAS CAUSED BUSINESS TO TUMBLE
... but there may be some bright spots ahead
The economy's biggest industry...
LIBYA'S GDP BY SECTOR
PUBLIC SERVICES 7%
...doesn't employ a lot of workers...
SHARE OF TOTAL WORKFORCE
PUBLIC SERVICES 55%
1,100 MILES (1,770 km)
LENGTH OF MEDITERRANEAN COASTLINE
Tourism's contribution to GDP is projected to grow 8% from now to 2021
Employment in the sector is projected to increase 68%
LIBYA IS A RELATIVELY WEALTHY NATION...
PER CAPITA GDP
SAUDI ARABIA $15,836
...WITH A HEALTHY, EDUCATED POPULATION
U.N. HUMAN DEVELOPMENT INDEX
OTHER ARAB STATES
UNDER GADDAFI, IN 2010
1.8 billion bbl. per day
DURING THE WAR
350,000 bbl per day
ESTIMATED POTENTIAL OUTPUT
3.5 billion bbl. per day
... and unemployment is high
30% (People under 25)
As a percentage of GDP
EUROPE STANDS TO BENEFIT MOST
LIBYA'S TOP TRADING PARTNERS
Imports In billions
South Korea 1.5
Exports In billions