First Published: 2013-11-12

Oil disruption affect Libya economy
Libyan economy to shrink 5.1% this year due to oil disruption triggered by protest blockades, while government will experience budget deficit.
Middle East Online

DUBAI - The Libyan economy is expected to contract by 5.1 percent this year due to oil output disruptions triggered by protest blockades, the International Monetary Fund warned on Tuesday.

The government will also experience a budget deficit, instead of enjoying a surplus, due to falling oil revenues, said Masood Ahmed, the IMF Middle East and Central Asia director.

"The Libyan economy is likely to contract this year, rather than expand," due to disruption to production, Ahmed said at a Dubai conference, where he launched the IMF's Regional Economic Outlook report.

The report predicted a 5.1 percent shrinkage of the Libyan economy this year.

Economic growth in the North Africa country had surged last year by 104.5 percent, compensating for a massive contraction of 62.1 percent in 2011, the year the regime of the late dictator Moamer Gathafi was toppled.

Protesters, including ex-rebels, demanding a fairer distribution of resources and jobs, have been blocking oil fields and export terminals, causing around $13 billion in losses to Libya's oil-dependent economy, authorities say.

Current output is estimated to have dropped to 250,000 barrels per day, from 1.5 million bpd before the protests erupted in July, an official at Libya's National Oil Company said last week.


Russia airstrikes target ISIS infrastructure facilities in Syria

Israeli fire wounds at least 10 Palestinians in West Bank

Erdogan faces tough talks in meeting with EU leaders

UAE holds election for advisory council

First hajj stampede bodies arrive in Iran from Saudi Arabia

Erdogan urges Putin to reconsider air campaign in Syria

Iran expels Bahrain envoy in apparent retaliation

US urges Libya rivals to move forward with peace deal

Powers condemn targeting of Syrian opposition by Russia

Turkey accuses Russia of hitting Syria rebels to bolster Assad

Palestinians kill Israeli couple in West Bank shooting

Russia again strikes Assad regime's foes

Iran backs Russian military strategy in Syria

S&P: Gulf banks' net earnings set to slide

Russia confirms new air strikes on targets in Syria

12 killed in Ankara bus stop crash

Syrians, Afghans clash in German refugee centre

South Sudan's peace deal means little in Koch swamps

Trump: If I’m elected, Syrians go back home!

Iran says 464 dead in Saudi hajj stampede

Saudi, Iran agree to repatriate dead pilgrims

Abbas: Palestinians no longer feel bound by past agreements with Israel

Russia, US to hold ‘de-confliction’ talks on Syria

Three conditions as France voices concern over Russia involvement in Syria

Iraq Kurdish forces recapture land from ISIS jihadists

Tunisia buries Sousse gunman under strict security cordon

Iran diplomat missing after hajj stampede

Six days after hajj tragedy, Iran-Saudi tensions escalate

For first time in history, Palestinians to raise flag at UN

Finland freezes asylum decisions for Iraq, Somalia refugees

UK Labour Party ready to support Syria airstrikes, with conditions

Iran Foreign Minister under fire over ‘Obama handshake’

Parliamentary and religious support as Russia launches airstrikes in Syria

Assad regime strikes kill 27 civilians in central Syria

Iraq kidnappers free remaining 16 Turkish workers

Iran threatens 'fierce' reaction if Saudi Arabia does not repatriate hajj victims

Damascus confirms Assad request for military aid from Russia

Europe refugee crisis in focus at UN

France launches war crimes inquiry against Syria regime

Coalition seizes Iran boat with arms for Yemen rebels

Putin gets unanimous parliament support for Syria air strikes

Morocco government blocks opening of first Ikea

Israeli air raids hit Gaza in response to rocket fire

Saudi FM insists Assad must go or be ousted

US training program of Syrian rebels ‘under review’