Libya Set to Record Fastest Arab Growth in 2025

  • Libya
  • 13 August 2025
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The Arab Monetary Fund expects Libya’s economy to record strong growth of around 14.3 percent in 2025, topping Arab economies in growth pace before slowing relatively to 5.9 percent in 2026. This is driven by the hydrocarbons sector, which accounts for more than 95 percent of the state’s fiscal revenues.

According to the Fund, weak stability and limited institutional capacity remain challenges to accelerating structural reforms. Meanwhile, Libya experienced relative stability in inflation rates, which stood at around 2.4 percent in 2023 and dropped to 2.1 percent in 2024, thanks to the stability of the dinar’s exchange rate against the dollar.

The Fund expects the Arab region’s economic growth rate to reach 3.8 percent in 2025, compared to 2.2 percent in 2024, rising to 4.3 percent in 2026, supported by improved macroeconomic indicators and the impact of economic reforms.

Source (Al-Araby Al-Jadeed Newspaper, Edited)

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