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’s economy is in a fragile state. Real GDP growth is forecast to remain subdued over the medium term due to lack of investment, poor governance, and stringent price regulation imposed by the government. Inflation, currency depreciation, and a lack of liquidity all pose new economic risks. Import cover remains comparatively high, but the continued financing of the increasingly large budget deficit, because of a reluctance to borrow externally, is depleting foreign reserves at an alarming rate. Reforms are slow and the economic outlook continues to be weak. (Source: Algeria Quarterly Update, published April 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)
-14.7
2.1
-14.3
-7.0
3,230.8
13.43
43.9
3.8