Recovering oil prices and a loosening of the government’s purse strings have afforded Algeria some breathing room after a number of challenging years. However, as Africa’s most important gas exporter, it remains highly dependent on the hydrocarbons sector for the majority of its government revenue and almost the entirety of its exports. Despite efforts to encourage private sector development, promote diversification and attract foreign direct investment in recent years, the state still plays a preponderant role, meaning that changes to government expenditure and investment continue to have a significant impact on overall economic performance.
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