Socialist People's Libyan Arab Jamahiriya: 2009 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; And Statement by the Executive Director for the Socialist People's Libyan Arab Jamahiriya (Electronic book text)

1. The discussions were held against the backdrop of declining oil revenue, a small decline in public expenditure, and moderate deceleration in non-oil growth. The ongoing normalization of diplomatic relations with the U.S. and the EU since 2007 continues to contribute to foreign investors' interest, particularly in the hydrocarbon, banking, and infrastructure sectors. Further spending under the Wealth Distribution Program (WDP), which was launched in March 2008 to distribute part of the oil wealth to the population and reduce the size of the government, has been put on hold over concerns about its potential impact on inflation and the provision of basic public services.