Country Profile
From The Report: Algeria 2018
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Since achieving independence in 1962, Algeria has pursued an activist foreign policy, pushing interests of developing countries through the Non-Aligned Movement, as well as in groups like the G-77. Algeria holds close trading links with its Mediterranean neighbours to the north, and is an important source of EU natural gas imports, particularly to France, Spain and Italy. The country has greatly increased its diplomatic and economic relations with China, which has become an important source of official development finance and discounted lending. Moreover, the state continues to play a dominant role in the Algerian economy, depending on oil and gas exports for some 60% of public revenue and 96% of exports. The sharp decline in global oil prices since 2014 resulted in several challenging years for the Algerian economy. This chapter contains interviews with President Abdelaziz Bouteflika; Ferid Belhaj, Vice-President for MENA, World Bank; and a viewpoint with Xi Jinping, President of the People’s Republic of China.

Articles from this Chapter

Overview

Moving forward: A young population and resurgent energy sector lead to positive outlook after several years of economic decline
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Algeria’s population reached 42.3m by the end of 2018, making it the second-largest country in North Africa after Egypt, which surpassed 100m earlier in the year. With demographic growth of 1.7% in 2017, Algeria’s Ministry of Health expects that the population will reach 51m by 2030. The population remains relatively young, with a median age of 27.8 and 29.2% of residents under the age of 15. Life expectancy at birth continues to rise, reaching 76 years in 2016. In line with global trends, recent…

Overview

Productive discourse: Ongoing reforms make space for economic recovery
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Under its constitution, which was last amended in 2016, Algeria is a semi-presidential republic, with a president acting as head of state and a prime minister acting as head of government. Elected for a five-year term, the president is empowered to appoint the prime minister and a council of ministers, following consultation with the parliamentary majority. While within this structure executive power lies formally with the government, in practice the most significant power is centred around the head…

Interview

Sustainable strength: President Abdelaziz Bouteflika, on how long-term diversification, regional integration and public-private partnerships (PPPs)
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Interview :Abdelaziz Bouteflika What is Algeria’s model for growth to 2030? ABDELAZIZ BOUTEFLIKA: In the current context of uncertainty, especially after the financial crisis of 2008, economies around the globe have been searching for a growth model that ensures the economy is both resilient and adaptable. In particular, the environment after 2014 has impacted our economy, as we saw our revenue from hydrocarbons exports – which represent an important source of financing for Algeria –…

Analysis

Unified approach: Diplomatic engagement sees rising levels of foreign trade
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Since achieving independence in 1962, Algeria has pursued an activist foreign policy, pushing interests of developing countries through the Non-Aligned Movement, as well as in groups like the G-77. Current president of the republic, Abdelaziz Bouteflika, served as the 29th president of the UN General Assembly in 1974 during his lengthy term performing as the country’s minister of foreign affairs. During Algeria’s civil war, which took place between 1991 and 2002, the country experienced a period…

Viewpoint

Shared interests: Xi Jinping, President of the People’s Republic of China, on a new, win-win model of economic partnership in Africa
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Viewpoint :Xi Jinping With similar pasts and a common mission, China and Africa have extended sympathy to and helped each other throughout the years, and together, we have embarked on a distinctive path of win-win cooperation. On this path, China has taken an open and inclusive approach to cooperation, fully aware that long-term stability, security and development in Africa is not only the longing of its people, but also the responsibility of the international community. Thus, China stands…

Interview

Business boost: Ferid Belhaj, Vice-president for MENA, World Bank, on how to increase business levels in the region
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Ferid Belhaj : Interview What more can be done to support inclusive economic growth in the Maghreb? FERID BELHAJ: In spite of moderate growth in recent years, unemployment remains high in the Maghreb, at around 13.5%, according to the latest figures from the International Labour Organisation. It is especially high among young people, at 32.8%. Jobs often come from newly created enterprises. Developing entrepreneurship in the region is therefore an avenue for job creation, hence greater inclusion…

Analysis

Historic ties: Algeria and China’s mutually beneficial partnership accelerates economic growth and infrastructure expansion
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In 2018 Algeria and China celebrated their 60th anniversary of diplomatic relations, a particularly notable achievement considering China has recently become the number-one source of Algerian imports. “The two countries are pioneers that have made history in many areas in the expansion of China-Arab ties,” China’s minister of foreign affairs, Wang Yi, said in a statement at the China-Arab States Cooperation Forum (CASCF) in early July 2018. In Business Chinese companies have been coming to…