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 outlook for the Algerian economy has worsened considerably amid the Covid-19 pandemic. Prior to the crisis, the outlook for real GDP growth was not great – forecast at just 1.1% for the year owing to a low oil price environment. Since then, a weaker global oil and gas price outlook coupled with Opec mandated oil production cuts has led to an even deeper-than-expected drop in hydrocarbons exports. The implementation of a full lockdown for most of Q2 has also weighed on economic activity. Overall, we forecast the economy to contract by 11.9% this year, making it one of the hardest-hit countries on the African continent. (Source: Algeria Annual Country Profile, published October 2020.)
Macroeconomic Data
(2019)
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)
-9.4
2.4
-10.5
0.8
3,950.4
13.7
43
3.2