The World Bank has warned that Libya will face enormous economic challenges in light of the disintegration of state institutions and social challenges with the tense political situation.
Jesko Hentschel, the Regional Director of the World Bank for the Maghreb and Malta, said that Libya desperately needs unified institutions, good management, strong political will, and long-awaited reforms.
A recent report issued by the Libyan Economic Monitor, affiliated with the World Bank, confirmed that the country’s economy performance for most of the year 2020 is the worst in recent years in light of problems in the oil sector and also the country’s impact on the emerging Coronavirus pandemic, which caused more economic and social turmoil and a decline in the Gross Domestic Product at the end of the same year.
Despite positive estimates regarding the recovery of the Libyan economy during the year of 2021, the report warned that growth in the non-oil sectors remained weak, hampered by the ongoing conflict and poor services, including the energy sector, and with the ongoing pandemic.
The bank added that the country needs urgent investments in infrastructure and improvement of security conditions in large parts of the country, which may contribute to improving the provision of public services and creating conditions for a rapid recovery in the non-oil sectors.