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Mali vs. Algeria

Economy

MaliAlgeria
Economy - overview

Among the 25 poorest countries in the world, landlocked Mali depends on gold mining and agricultural exports for revenue. The country's fiscal status fluctuates with gold and agricultural commodity prices and the harvest; cotton and gold exports make up around 80% of export earnings. Mali remains dependent on foreign aid.

Economic activity is largely confined to the riverine area irrigated by the Niger River; about 65% of Mali's land area is desert or semidesert. About 10% of the population is nomadic and about 80% of the labor force is engaged in farming and fishing. Industrial activity is concentrated on processing farm commodities. The government subsidizes the production of cereals to decrease the country's dependence on imported foodstuffs and to reduce its vulnerability to food price shocks.

Mali is developing its iron ore extraction industry to diversify foreign exchange earnings away from gold, but the pace will depend on global price trends. Although the political coup in 2012 slowed Mali's growth, the economy has since bounced back, with GDP growth above 5% in 2014-17, although physical insecurity, high population growth, corruption, weak infrastructure, and low levels of human capital continue to constrain economic development. Higher rainfall helped to boost cotton output in 2017, and the country's 2017 budget increased spending more than 10%, much of which was devoted to infrastructure and agriculture. Corruption and political turmoil are strong downside risks in 2018 and beyond.

Algeria's economy remains dominated by the state, a legacy of the country's socialist post-independence development model. In recent years the Algerian Government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy, pursuing an explicit import substitution policy.

Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of GDP, 60% of budget revenues, and nearly 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world - including the 3rd-largest reserves of shale gas - and is the 6th-largest gas exporter. It ranks 16th in proven oil reserves. Hydrocarbon exports enabled Algeria to maintain macroeconomic stability, amass large foreign currency reserves, and maintain low external debt while global oil prices were high. With lower oil prices since 2014, Algeria's foreign exchange reserves have declined by more than half and its oil stabilization fund has decreased from about $20 billion at the end of 2013 to about $7 billion in 2017, which is the statutory minimum.

Declining oil prices have also reduced the government's ability to use state-driven growth to distribute rents and fund generous public subsidies, and the government has been under pressure to reduce spending. Over the past three years, the government has enacted incremental increases in some taxes, resulting in modest increases in prices for gasoline, cigarettes, alcohol, and certain imported goods, but it has refrained from reducing subsidies, particularly for education, healthcare, and housing programs.

Algiers has increased protectionist measures since 2015 to limit its import bill and encourage domestic production of non-oil and gas industries. Since 2015, the government has imposed additional restrictions on access to foreign exchange for imports, and import quotas for specific products, such as cars. In January 2018 the government imposed an indefinite suspension on the importation of roughly 850 products, subject to periodic review.

President BOUTEFLIKA announced in fall 2017 that Algeria intends to develop its non-conventional energy resources. Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth. Algeria has not increased non-hydrocarbon exports, and hydrocarbon exports have declined because of field depletion and increased domestic demand.

GDP (purchasing power parity)$45.637 billion (2019 est.)

$43.567 billion (2018 est.)

$41.593 billion (2017 est.)

note: data are in 2010 dollars
$495.564 billion (2019 est.)

$491.631 billion (2018 est.)

$485.801 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate5.4% (2017 est.)

5.8% (2016 est.)

6.2% (2015 est.)
1.4% (2017 est.)

3.2% (2016 est.)

3.7% (2015 est.)
GDP - per capita (PPP)$2,322 (2019 est.)

$2,284 (2018 est.)

$2,247 (2017 est.)

note: data are in 2010 dollars
$11,511 (2019 est.)

$11,642 (2018 est.)

$11,737 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 41.8% (2017 est.)

industry: 18.1% (2017 est.)

services: 40.5% (2017 est.)
agriculture: 13.3% (2017 est.)

industry: 39.3% (2017 est.)

services: 47.4% (2017 est.)
Population below poverty line42.1% (2019 est.)5.5% (2011 est.)
Household income or consumption by percentage sharelowest 10%: 3.5%

highest 10%: 25.8% (2010 est.)
lowest 10%: 2.8%

highest 10%: 26.8% (1995)
Inflation rate (consumer prices)1.9% (2018 est.)

1.8% (2017 est.)

1.7% (2017 est.)
1.9% (2019 est.)

4.2% (2018 est.)

5.6% (2017 est.)
Labor force6.447 million (2017 est.)10.859 million (2017 est.)
Labor force - by occupationagriculture: 80%

industry and services: 20% (2005 est.)
agriculture: 10.8%

industry: 30.9%

services: 58.4% (2011 est.)
Unemployment rate7.9% (2017 est.)

7.8% (2016 est.)
11.7% (2017 est.)

10.5% (2016 est.)
Distribution of family income - Gini index40.1 (2001)

50.5 (1994)
27.6 (2011 est.)
Budgetrevenues: 3.075 billion (2017 est.)

expenditures: 3.513 billion (2017 est.)
revenues: 54.15 billion (2017 est.)

expenditures: 70.2 billion (2017 est.)
Industriesfood processing; construction; phosphate and gold miningpetroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
Industrial production growth rate6.3% (2017 est.)0.6% (2017 est.)
Agriculture - productsmaize, rice, millet, sorghum, mangoes/guavas, cotton, watermelons, green onions/shallots, okra, sugar canepotatoes, wheat, milk, watermelons, barley, onions, tomatoes, oranges, dates, vegetables
Exports$3.06 billion (2017 est.)

$2.803 billion (2016 est.)
$34.37 billion (2017 est.)

$29.06 billion (2016 est.)
Exports - commoditiesgold, cotton, sesame seeds, lumber, vegetable oils/residues (2019)crude petroleum, natural gas, refined petroleum, fertilizers, ammonia (2019)
Exports - partnersUnited Arab Emirates 66%, Switzerland 26% (2019)Italy 13%, France 13%, Spain 12%, United States 7%, United Kingdom 7%, India 5%, South Korea 5% (2019)
Imports$3.644 billion (2017 est.)

$3.403 billion (2016 est.)
$48.54 billion (2017 est.)

$49.43 billion (2016 est.)
Imports - commoditiesrefined petroleum, clothing and apparel, packaged medicines, cement, broadcasting equipment (2019)refined petroleum, wheat, packaged medical supplies, milk, vehicle parts (2019)
Imports - partnersSenegal 23%, Cote d'Ivoire 15%, China 11%, France 9% (2019)China 18%, France 14%, Italy 8%, Spain 8%, Germany 5%, Turkey 5% (2019)
Debt - external$4.192 billion (31 December 2017 est.)

$3.981 billion (31 December 2016 est.)
$5.574 billion (2019 est.)

$5.666 billion (2018 est.)
Exchange ratesCommunaute Financiere Africaine francs (XOF) per US dollar -

605.3 (2017 est.)

593.01 (2016 est.)

593.01 (2015 est.)

591.45 (2014 est.)

494.42 (2013 est.)
Algerian dinars (DZD) per US dollar -

131.085 (2020 est.)

119.775 (2019 est.)

118.4617 (2018 est.)

100.691 (2014 est.)

80.579 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt35.4% of GDP (2017 est.)

36% of GDP (2016 est.)
27.5% of GDP (2017 est.)

20.4% of GDP (2016 est.)

note: data cover central government debt as well as debt issued by subnational entities and intra-governmental debt
Reserves of foreign exchange and gold$647.8 million (31 December 2017 est.)

$395.7 million (31 December 2016 est.)
$97.89 billion (31 December 2017 est.)

$114.7 billion (31 December 2016 est.)
Current Account Balance-$886 million (2017 est.)

-$1.015 billion (2016 est.)
-$22.1 billion (2017 est.)

-$26.47 billion (2016 est.)
GDP (official exchange rate)$17.508 billion (2019 est.)$169.912 billion (2019 est.)
Ease of Doing Business Index scoresOverall score: 52.9 (2020)

Starting a Business score: 84.3 (2020)

Trading score: 73.3 (2020)

Enforcement score: 42.8 (2020)
Overall score: 48.6 (2020)

Starting a Business score: 78 (2020)

Trading score: 38.4 (2020)

Enforcement score: 54.8 (2020)
Taxes and other revenues20% (of GDP) (2017 est.)32.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-2.9% (of GDP) (2017 est.)-9.6% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 2.4%

male: 2.6%

female: 2.3% (2018 est.)
total: 39.3%

male: 33.1%

female: 82% (2017 est.)
GDP - composition, by end usehousehold consumption: 82.9% (2017 est.)

government consumption: 17.4% (2017 est.)

investment in fixed capital: 19.3% (2017 est.)

investment in inventories: -0.7% (2017 est.)

exports of goods and services: 22.1% (2017 est.)

imports of goods and services: -41.1% (2017 est.)
household consumption: 42.7% (2017 est.)

government consumption: 20.2% (2017 est.)

investment in fixed capital: 38.1% (2017 est.)

investment in inventories: 11.2% (2017 est.)

exports of goods and services: 23.6% (2017 est.)

imports of goods and services: -35.8% (2017 est.)
Gross national saving15.6% of GDP (2018 est.)

14.3% of GDP (2017 est.)

15.4% of GDP (2015 est.)
38.8% of GDP (2017 est.)

37.4% of GDP (2016 est.)

36.4% of GDP (2015 est.)

Source: CIA Factbook