From The Report: Algeria 2018
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As Africa’s most important gas exporter, Algeria remains highly dependent on the hydrocarbons sector for the majority of government revenues and almost the entirety of its exports. Despite reforms to encourage private sector development, promote diversification and attract foreign direct investment in recent years, the state plays a preponderant role, meaning that expenditure and investments continue to have a significant impact on overall economic performance. The drop in global oil prices since 2014 is at the root of Algeria’s most recent economic challenges, giving rise to large twin deficits in the fiscal and current accounts. The strategy embarked by the authorities in late 2017 has brought some relief to Algeria, though the sustainability of this approach rests on the adoption of necessary corrective measures from 2019 onwards. This chapter contains interviews with Abderrahmane Raouya, Minister of Finance; Richard Lesser, CEO, Boston Consulting Group; and Ali Haddad, President, Algerian Business Leaders’ Forum.