According to a report by the Libyan audit Bureau, the Central Bank of Libya-CBL has recorded a 20% fall this year largely due to a blockade on energy exports by eastern-based opposition forces. 

Annual oil prices are forecasted to drop at $5 billion from $31billion, which was recorded last year, thus dragging the central bank reserves down to $50billion.

The Eastern-based rebels shut down oil exports in January 2020, additionally, oil prices around the world have drastically declined due to the coronavirus pandemic.

Furthermore, “The fiscal deficit is forecasted to reach $19 billion this year,” the Tripoli-based audit bureau said in a video posted on Facebook on Friday.

Libya highly depends on revenue from the petroleum industry which represents over 95% of export earnings and 60% of Gross Domestic Products.

Since 2014, the country has been dealing with divided leadership between Khalifa Haftar of the Libyan National Army and United Nations recognized president, Mohammed Yousef el-Magariaf. Khalifa’s administration in Benghazi has a stronghold of the eastern region of the country, where most oil production and exportations happen.

The shutdown of oil exports by the Libyan National Army coupled with the consistent global decline in oil prices, has led to a rapid reduction in revenue for the country. 

Intervention by various international institutions to settle the insecurity in the country keeps regressing as both leaders are still at loggerheads.

Just a few days ago the European Union urged Libya to engage in peace talks, as attacks and fights surged.

Sadly, the insecurity has taken a toll on the economy of the country which caters to its population of 6,678,567. The unemployment rate in 2018 was 17.29 percent, which is an increase of 0.17 percent from 17.12 percent in 2017.

Considering the harsh reality of the global recession, a decline in oil prices and insecurity, the Libyan government and world institutions need to lay more emphasis on peace talks.