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.
The oil giant is being crippled by a socioeconomic crisis, and the record-low turnout of voters at the legislative elections held on June 12 sheds light on the public’s dissatisfaction with the authorities. We expect the current account and budget deficits to narrow on the back of the rebound in the crude oil price, but these deficits continue to weigh heavily on a government that is gradually depreciating its local currency in an attempt to boost and diversify its exports. We forecast GDP growth to reach 2.7% this year, after it contracted by an estimated 7.0% in 2020. (Source: Algeria Quarterly Update, published July 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)
-9.2
2.1
-13.2
-7.0
3,203.8
13.43
43.9
3.7