In particular, it may be relevant to explore more in depth the nature of the products in the machinery sector to better understand the scope of their potential role in the Libyan economic structure. If there is macroeconomic instability and uncertainty, private investment is significantly and negatively influenced because unpredictability hampers resource allocation decisions, investment and grow th. During periods of macroeconomic instability, entrepreneurs will operate on short-term investment horizons, choosing activities with quick returns rather than projects with longer-term investment returns, such as in manufacturing. From 2003-10, GDP grew at an annual average rate of 6.1%, even with the slowdown in growth during the global downturn in 2008 and 2009. The oil sector - favoured by a hike in global oil prices - contributed significantly to this economic expansion, fuelling revenues and growth.