This study examines the phenomenon of economic corruption and its impact on the competitiveness of the Libyan economy. The study demonstrated that widespread corruption in Libyan institutions, especially since 2011, has led to a decline in economic performance in general, and competitiveness in particular. Based on the above, this paper aims to shed light on the extent to which corruption affects the competitiveness indicators of the Libyan economy. A descriptive-analytical approach was used to analyze corruption and competitiveness indicators, relying on international and Arab reports over intermittent study periods. The paper also described the most prominent manifestations of corruption in the public sectors, particularly those directly related to the competitiveness index, such as infrastructure, the judiciary, and education. The study concluded that Libya's exit from the Global Competitiveness Index (GCI) is conclusive evidence of the decline in the economic performance of all its institutions as a result of widespread corruption in economic institutions. Reforming public institutions, enhancing transparency, and activating oversight bodies are among the most important means of improving economic competitiveness. It also recommended developing a comprehensive national strategy to combat corruption that includes all stakeholders in the country................... Keywords: ...............Corruption, Competitiveness, Transparency, Libyan Economy.