From The Report: Algeria 2015
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With industrial production increasing, construction projects breaking ground and transport activity rising, Algeria’s economy has benefitted from stable growth in a diverse array of sectors. However, oil and gas remain its lifeblood. The economy grew by 3.8% in real terms in 2014, according to figures from the National Office of Statistics, up from 2.8% in 2013. The IMF forecasts the figure to fall to 3% in 2015, before recovering to 3.8% in 2016. The government’s 2016 budget is based on non-hydrocarbons GDP growth of 4.6%. Algeria’s near-term economic prospects will depend heavily on oil price movements, and current price levels are putting the country’s trade and fiscal balances under substantial pressure, which will only increase should prices remain steady or fall further. However, the current environment is also pushing the country to attract more investment and step up long-standing plans for diversification, which could help to put Algeria on a more sustainable economic footing in the long term. This chapter contains interviews with Abderrahmane Benkhelfa, Minister of Finance; Ali Haddad, President, Algerian Business Leaders Forum; Kaddour Bentahar, General Manager, Algerian Customs Agency; Michael Lally, US Deputy Assistant Secretary of Commerce for Europe, the Middle East and Africa; and Mohamed Chami, Director-General, Algerian Chamber of Commerce and Industry.