In-Depth Analysis
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. Recent changes in the political landscape, however, give some reason to hope for policy change.
Despite a slight uptick in Q3 2019, economic growth is expected to remain subdued over the medium term (averaging 1.6% p.a. over the 2020-24 period) due to a continued decline in oil output, as well as only marginal recovery in oil and gas prices. A struggling hydrocarbons sector is also expected to place further pressure on foreign reserves, which have plummeted since the beginning of the oil price slump in 2014 by an average of 16.8% p.a. (reaching $67.2bn by end-July 2019). This could necessitate more drastic policy measures targeted at improving export competitiveness, as well as addressing external imbalances. The recent change in the political landscape over the past quarter, however, gives some reason to hope for policy changes in the direction of less state control and a greater role for the private sector. (Source: Algeria Quarterly Update, published January 2020.)
Macroeconomic Data
(2019)
Fiscal Balance (as a % of GDP)
Consumer Price Index (% change y-o-y, avg)
Current Account Balance (as a % of GDP)
Real GDP (annual % change)
GDP per Capita, US$
Import Cover (months)
Population, million
Total External Debt (as a % of GDP)
-8.2
2.4
-11.4
0.9
3,925.1
13.8
43
3.4