Algeria Economy Profile 2008

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 14th 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 10% 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)

$268.9 billion (2007 est.)

GDP (official exchange rate)

$125.9 billion (2007 est.)

GDP - real growth rate

4.6% (2007 est.)

GDP - per capita (PPP)

$8,100 (2007 est.)

GDP - composition by sector

agriculture: 8.1%
industry: 61%
services: 30.9% (2007 est.)

Population below poverty line

25% (2005 est.)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

4.6% (2007 est.)

Investment (gross fixed)

23.5% of GDP (2007 est.)

Labor force

9.38 million (2007 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

14.1% (2007 est.)

Distribution of family income - Gini index

35.3 (1995)

Budget

revenues: $58.5 billion
expenditures: $41.35 billion (2007 est.)

Public debt

9.7% of GDP (2007 est.)

Industries

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

Industrial production growth rate

5% (2007 est.)

Electricity - production

31.91 billion kWh (2005 est.)

Electricity - consumption

27.52 billion kWh (2005 est.)

Electricity - exports

275 million kWh (2005 est.)

Electricity - imports

359 million kWh (2005 est.)

Oil - production

2.09 million bbl/day (2005 est.)

Oil - consumption

250,000 bbl/day (2005 est.)

Oil - imports

12,390 bbl/day (2004 est.)

Oil - exports

1.724 million bbl/day (2004 est.)

Oil - proved reserves

11.35 billion bbl (1 January 2006 est.)

Natural gas - production

84.4 billion cu m (2005 est.)

Natural gas - consumption

21.8 billion cu m (2005 est.)

Natural gas - exports

62.6 billion cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

4.359 trillion cu m (1 January 2006 est.)

Current Account Balance

$31.5 billion (2007 est.)

Agriculture - products

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

Exports

$63.3 billion f.o.b. (2007 est.)

Exports - commodities

petroleum, natural gas, and petroleum products 97%

Exports - partners

US 27.2%, Italy 17%, Spain 9.7%, France 8.8%, Canada 8.1%, Belgium 4.3% (2006)

Imports

$26.08 billion f.o.b. (2007 est.)

Imports - commodities

capital goods, foodstuffs, consumer goods

Imports - partners

France 22%, Italy 8.6%, China 8.5%, Germany 5.9%, Spain 5.9%, US 4.8%, Turkey 4.5% (2006)

Reserves of foreign exchange and gold

$99.33 billion (31 December 2007 est.)

Debt - external

$3.358 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$14.37 billion (2006 est.)

Stock of direct foreign investment - abroad

$834 million (2006 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$370.6 million (2005 est.)

Currency (code)

Algerian dinar (DZD)

Exchange rates

Algerian dinars per US dollar - 69.9 (2007), 72.647 (2006), 73.276 (2005), 72.061 (2004), 77.395 (2003)

Fiscal year

calendar year