In-Depth Analysis
Algeria
The Algerian economy relies on hydrocarbon exports and state-centred economic management. The Covid-19-induced slump in global oil and gas demand has prompted aggressive oil production cuts. This coupled with low global oil and gas prices has worsened the economy’s outlook. Authorities plan to diversify the economy and boost manufacturing and other sectors, but such restructuring can take decades to implement.
Algeria has entered the new year with the added hope of the recent recovery in the price of oil and plans to distribute Covid-19 vaccines purchased from Russia. However, the economic damage suffered during 2020 has left its scars: oil production remains below 2019 levels and foreign reserves have accelerated its decline. The efficacy of reforms dictating the terms of foreign investment in the hydrocarbons sector will determine the economy’s growth over the medium term. (Source: Algeria Quarterly Update, published February 2021.)
Macroeconomic Data
(2020)
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)
-15.3
2.1
-8.3
-11.9
2,990.7
13.3
43.9
4.8