The civil war in Libya hit the economy hard but there are some initial signs of recovery.
-- Non-hydrocarbon GDP is expected to recover by 2014, driven mainly by reconstruction. Although consumer prices increased significantly during 2011, consumer price inflation is expected to ease significantly once imports have resumed.
-- The 2012 budget announced in March is expected to help stimulate the non-hydrocarbon sector and to bridge the shortfall in budget resources for social spending in the first budget approved by the interim government.
-- The external current account surplus in 2012 will also increase with the restoration of exports. Most of the U.N. sanctions that froze Libya's foreign assets (a total of 200 percent of 2010 GDP) were lifted on Dec. 16, 2011, which will allow the Central Bank of Libya to support the exchange rate.
NUMBERS: (2009 figures - Current US$)
GNI per capita: $12,320
GDP Growth - 2.1 percent
* OIL - According to the Oil and Gas Journal (OGJ), Libya holds around 46.4 billion barrels of oil reserves, the largest in Africa, and close to 55 trillion cubic feet (Tcf) of natural gas reserves. Oil production fell to a virtual standstill during last year's fighting but has climbed close to pre-war output levels of 1.6 million barrels per day. GDP growth declined by 60 percent as oil production declined to an average of around 479,000 bpd by the end of 2011. Close to 80 percent of Libya's proven oil reserves are located in the Sirte basin, which accounts for most of the country's oil output.
-- Libya has previously announced plans to increase production to around 2 million bpd in the future but it will need foreign investment and expertise to do that.
-- Libya's largest refinery at Ras Lanuf will not restart in early July as planned, but a petrochemical unit, which does not run on crude oil, will resume operations.
* DEVELOPMENT INDICATORS - Libya ranked 64th out of 187 countries in the latest U.N. Human Development Index. Life expectancy was 74.8 in 2011 up by 1 year from 2006. The adult literacy rate was 86.2 percent in 2006. Libya was ranked 168 out of 183 in Tranparency International's 2011 Corruption Perceptions Index along with Democratic Republic of Congo, Chad and Angola. Libya was ranked 146 out of 178 countries in 2010.
* HEALTH - During the conflict, health and social services were interrupted. An assessment by WHO of health systems in the eastern part of the country in 2011 already indicated a collapse of the primary health care system due to lack of staff and supplies, even where structural damage was not widespread. The transitional government is reinstating disrupted health services with the support of the United Nations.
-- Looking ahead, one of the main sectors in which foreign nations are vying for contracts is health which has urgent investment needs.
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