The Report: Algeria 2017

The Report: Algeria 2017

The collapse in oil prices has weighed on the Algerian economy, giving rise to twin deficits in the budget and current account. In mid-2016 the government introduced a bold medium-term plan that targets a balanced budget by 2020, alongside a new growth model with a strategy for economic development and diversification by 2030. These moves have coincided with the private sector playing a much stronger role in the economy.

A long-term structural shift is under way in the Algerian economy. Having stood at 42% in 2000, the private sector’s economic contribution grew to 70% of GDP by 2015, with economic output increasing four-fold over the same timeframe. And while the government was largely able to attenuate the impact of lower oil prices on its finances by drawing from the oil stabilisation fund, the unveiling of the country’s new economic development plan in 2016 was both a timely response to the challenges posed by the oil price collapse, and an important strategic effort to engender a more diversified, dynamic and self-sufficient economy by 2030.

See also:

Special Report: Algiers Smart City: Practical & Pragmatic

 

OBG & Algeria