Algeria Profile
The Algerian economy is characterised by its reliance on hydrocarbon exports and state-centred economic management. Authorities plan to diversify the economy and boost manufacturing and other sectors, but such restructuring can take decades to implement.
The events of the last quarter caught us, and most Algerians, by surprise. After years of somewhat complacent acceptance of the political status quo, citizens said enough is enough and drew the line at a fifth term for ailing former President Abdelaziz Bouteflika. By early April, he had been forced by massive protests to submit his resignation and a caretaker president stepped in to ready the country for elections in July. The political situation remains fluid and protesters have stayed steadfast in their determination to rid the country of the previous ruling elite popularly referred to as ‘the power’. What new political order will grow out of the popular rejection of the old is still to be seen, as at present the country appears galvanised against what it rejects rather than united on what it hopes comes next. We now expect GDP to grow by 2.0% this year and to remain lacklustre over the short to medium term. Fiscal and current account deficits, meanwhile, are seen widening and foreign reserves will likely drain faster given our bearish outlook for hydrocarbon prices. (Source: Algeria Quarterly Update, published April 2019.)
Macroeconomic Data
(2018)
Fiscal Balance (as a % of GDP)
Consumer Price Index (% change y-o-y, avg)
Current Account Balance (as a % of GDP)
Real GDP (annual % change)
GDP per Capita, US$
Import Cover (months)
Population, million
Total External Debt (as a % of GDP)
-8.3
4.3
-7.8
1.4
4,138
19.5
41.9
2.4