Libyan oil revenue tripled in 2017

LIBYA earned $14 billion (R172.47bn) in oil revenues in 2017. This is nearly three times more than in the previous year, allowing it to halve its budget deficit, the central bank said.

The news came amid a partial recovery in oil output despite continued political and economic turmoil.

Libya’s budget deficit for 2017 stood at 10.6 billion Libyan dinars (R95.56bn), down from 20.3bn dinars the previous year, the bank said in a statement published on Thursday.

Oil revenues had totalled $4.8bn in 2016.

The country’s oil earnings accounted for more than 86 percent of Libya’s total national revenues of 22.31billion dinars.

Of 32.7 billion dinars worth of state spending, 20.3billion dinars went on state salaries and 6billion dinars on subsidies, the statement said.

The figures show the partial recovery last year in oil production slightly slowing the otherwise rapid economic decline of a nation still dogged by armed conflict and political upheaval more than seven years after the overthrow of veteran leader Muammar Gaddafi.

Economists say it is unclear to what extent the central bank’s figures fully reflect economic activity, because the institution has been split for several years between its Tripoli headquarters and a rival branch loyal to a government based in eastern Libya.

The Tripoli central bank said its figures did not include 22 billion dinars of what it regards as unauthorised spending by the central bank in the east.

Libya has been divided since 2014 between rival institutions and warring factions based in the east and west.

However, the central bank in Tripoli has continued to control oil revenues, which account for nearly all of the country’s income, and to disburse them across the country.

Oil production, in decline from 2013, recovered to around 1 million barrels a day last year, but this is still well below the more than 1.6 million bpd Libya was pumping before the 2011 uprising.

Living standards have dropped sharply, with inflation running at around 30 percent and the dinar slipping on the black market to about 9 dinars to the dollar.

Foreign reserves have fallen to an estimated $67.5bn (R831bn), with $123.5bn in 2012, according to the World Bank.

The central bank said in November that it had agreed on currency and spending reforms with the internationally recognised government in Tripoli, but it is unclear when the plan will be carried out. – Reuters