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.
Although forex reserves are still ample, the sharp decline in gas prices this year and relatively soft oil prices, coupled with waning output of the latter, mean hydrocarbon revenues are going to fall short of where they need to be to fund government spending on generous subsidies and capital expenditure. By the end of the year, we forecast reserves will dip to $63.2bn – a third of their level in 2013. The need for reforms to ensure greater economic robustness has never been clearer, but the way forward politically remains shrouded. Slow economic growth (forecast at 1.7% this year) will not provide the opportunities needed by the young on the streets looking for change. Luckily for authorities, inflation has remained mercifully low and not added to their pressures.. (Source: Algeria Quarterly Update, published August 2019.)
Macroeconomic Data
(2018)
Fiscal Balance (as a % of GDP)
Consumer Price Index (% change y-o-y, avg)
Current Account Balance (as a % of GDP)
Real GDP (annual % change)
GDP per Capita, US$
Import Cover (months)
Population, million
Total External Debt (as a % of GDP)
-5.7
3.5
-9.0
1.5
4,136.8
16.4
42.2
3.3