By any measure, 2011 was a momentous year for Libya. The fall of the Gaddafi government created, for the first time, an opportunity for the country to pursue the types of economic and social reforms that vested interests had previously prevented. Although the change is certainly an opportunity, the manner in which the revolution came about has had serious economic implications and created numerous challenges. Most importantly, Libya temporarily stopped producing and exporting oil, the country’s main revenue source, while the freezing of the country’s assets by the international community created significant obstacles. The conflict effectively brought the formal economy to a halt, resulting in an estimated 41.8% contraction in real GDP in 2011. Nevertheless, Libya’s economy is expected to pick up as the political situation stabilises, with growth projected at 20.1% in 2012 and 9.5% in 2013. The speedy return of foreign oil companies alongside the strong international support the country has received bodes well for Libya’s post conflict recovery.