Algeria Economy Profile 2009

Economy - overview

The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter; it ranks 15th in oil reserves. Sustained high oil prices in recent years have helped improve Algeria's financial and macroeconomic indicators. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Algeria has decreased its external debt to less than 5% of GDP after repaying its Paris Club and London Club debt in 2006. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success in reducing high unemployment and improving living standards. Structural reform within the economy, such as development of the banking sector and the construction of infrastructure, moves ahead slowly hampered by corruption and bureaucratic resistance.

GDP (purchasing power parity)

$232.9 billion (2008 est.)
$225.1 billion (2007 est.)
$218.3 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$159.7 billion (2008 est.)

GDP - real growth rate

3.5% (2008 est.)
3.1% (2007 est.)
2.1% (2006 est.)

GDP - per capita (PPP)

$6,900 (2008 est.)
$6,700 (2007 est.)
$6,600 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 8.3%
industry: 62.3%
services: 29.4% (2008 est.)

Population below poverty line

23% (2006 est.)

Labor force

9.464 million (2008 est.)

Labor force - by occupation

agriculture 14%, industry 13.4%, construction and public works 10%, trade 14.6%, government 32%, other 16% (2003 est.)

Unemployment rate

12.5% (2008 est.)
11.8% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.8%
highest 10%: 26.8% (1995)

Distribution of family income - Gini index

35.3 (1995)

Investment (gross fixed)

26.1% of GDP (2008 est.)

Budget

revenues: $70.06 billion
expenditures: $56.04 billion (2008 est.)

Public debt

9.9% of GDP (2008 est.)
37.4% of GDP (2004 est.)

Inflation rate (consumer prices)

4.5% (2008 est.)
3.5% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
4% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
8% (31 December 2007)

Stock of money

$60.91 billion (31 December 2008)
$55.43 billion (31 December 2007)

Stock of quasi money

$30.36 billion (31 December 2008)
$28.59 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$NA (31 December 2007)

Industries

petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing

Industrial production growth rate

3.2% (2008 est.)

Electricity - production

33.12 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 99.7%
hydro: 0.3%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

26.91 billion kWh (2006 est.)

Electricity - exports

300 million kWh (2006 est.)

Electricity - imports

382 million kWh (2006 est.)

Oil - production

2.173 million bbl/day (2007 est.)

Oil - consumption

279,800 bbl/day (2006 est.)

Oil - imports

13,110 bbl/day (2005 est.)

Oil - exports

1.844 million bbl/day (2005 est.)

Oil - proved reserves

14.79 billion bbl (1 January 2008 est.)

Natural gas - production

85.7 billion cu m (2007 est.)

Natural gas - consumption

26.3 billion cu m (2007 est.)

Natural gas - exports

59.4 billion cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

4.502 trillion cu m (1 January 2008 est.)

Current Account Balance

$34.99 billion (2008 est.)
$30.6 billion (2007 est.)

Agriculture - products

wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle

Exports

$78.23 billion (2008 est.)
$60.6 billion (2007 est.)

Exports - commodities

petroleum, natural gas, and petroleum products 97%

Exports - partners

US 23.9%, Italy 14.9%, Spain 11.1%, Canada 9.6%, France 8.6%, Netherlands 4.5% (2008)

Imports

$39.16 billion (2008 est.)
$26.4 billion (2007 est.)

Imports - commodities

capital goods, foodstuffs, consumer goods

Imports - partners

France 19.8%, Italy 10.9%, China 9%, Spain 7.6%, Germany 5.4% (2008)

Reserves of foreign exchange and gold

$143.5 billion (31 December 2008 est.)
$110.6 billion (31 December 2007 est.)

Debt - external

$2.7 billion (31 December 2008 est.)
$3.957 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$13.76 billion (31 December 2008 est.)
$11.91 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$1.162 billion (31 December 2008 est.)
$962 million (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$370.6 million (2005 est.)

Currency (code)

DZD

Currency (code)

Algerian dinar (DZD)

Exchange rates

Algerian dinars (DZD) per US dollar - 63.25 (2008 est.), 69.9 (2007), 72.647 (2006), 73.276 (2005), 72.061 (2004)

Fiscal year

calendar year