Hydrocarbons remain the mainstay of Algeria’s economy, although following the drop in oil prices since mid-2014, the government is hastening efforts to encourage investment in other sectors. The fiscal and current account deficits – both of which are relatively new phenomenon for Algeria – are expected to narrow as spending cuts, efforts to widen the tax base and diversification efforts all have an effect. While foreign reserve and government debt levels are under pressure, both appear set to remain reasonably comfortable over the near future.
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