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Algeria Economy Profile 2018

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Economy - overviewAlgeria'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.

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 and is the sixth-largest gas exporter. It ranks 16th in oil reserves. Hydrocarbon exports enabled Algeria to maintain macroeconomic stability and amass large foreign currency reserves while oil prices were high. In addition, Algeria's external debt is extremely low at about 2% of GDP. However, Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth. Declining oil prices since 2014 have reduced the government’s ability to use state-driven growth to distribute rents and fund generous public subsidies. Algeria’s foreign exchange reserves have declined by more than 40% since late 2013 and its oil stabilization fund has decreased from about $75 billion at the end of 2013 to about $7 billion in 2017, which is the statutory minimum.

Algiers has strengthened 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 regulatory requirements on access to foreign exchange for imports and import quotas for specific products, such as cars, to limit their importation. Meanwhile, Algeria has not increased non-hydrocarbon exports, and hydrocarbon exports have declined because of field depletion and increased domestic demand.

With declining revenues caused by falling oil prices, the government has been under pressure to reduce spending. A wave of economic protests in February and March 2011 prompted Algiers to offer more than $23 billion in public grants and retroactive salary and benefit increases, moves which continue to weigh on public finances. In 2016, the government increased taxes on electricity and fuel, resulting in a modest increase in gasoline prices, and in 2017 raised by 2% the value-added tax on nearly all products, but has refrained from directly reducing subsidies, particularly for education, healthcare, and housing programs.

Long-term economic challenges include diversifying the economy away from its reliance on hydrocarbon exports, bolstering the private sector, attracting foreign investment, and providing adequate jobs for younger Algerians.
GDP (purchasing power parity)$629.3 billion (2017 est.)
$620.2 billion (2016 est.)
$600.4 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$175.5 billion (2016 est.)
GDP - real growth rate1.5% (2017 est.)
3.3% (2016 est.)
3.7% (2015 est.)
GDP - per capita (PPP)$15,100 (2017 est.)
$15,200 (2016 est.)
$15,000 (2015 est.)
note: data are in 2017 dollars
Gross national saving34.9% of GDP (2017 est.)
37.2% of GDP (2016 est.)
36.3% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 42.7%
government consumption: 21.4%
investment in fixed capital: 42.7%
investment in inventories: 7.6%
exports of goods and services: 21%
imports of goods and services: -35.5% (2017 est.)
GDP - composition by sectoragriculture: 13.2%
industry: 36.1%
services: 50.7% (2017 est.)
Population below poverty line23% (2006 est.)
Labor force11.82 million (2017 est.)
Labor force - by occupationagriculture: 30.9%
industry: 30.9%
services: 58.4% (2011 est.) (2011 est.)
Unemployment rate11.7% (2017 est.)
10.5% (2016 est.)
Unemployment, youth ages 15-24total: 25.2%
male: 22.1%
female: 41.5% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 2.8%
highest 10%: 26.8% (1995)
Distribution of family income - Gini index35.3 (1995)
Budgetrevenues: $52.08 billion
expenditures: $70.74 billion (2017 est.)
Taxes and other revenues29.7% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-10.6% of GDP (2017 est.)
Public debt19.9% of GDP (2017 est.)
18% of GDP (2016 est.)
note: data cover central government debt, as well as debt issued by subnational entities and intra-governmental debt
Inflation rate (consumer prices)5.5% (2017 est.)
6.4% (2016 est.)
Central bank discount rate4% (31 December 2010)
4% (31 December 2009)
Commercial bank prime lending rate8% (31 December 2017 est.)
8% (31 December 2016 est.)
Stock of narrow money$86.45 billion (31 December 2017 est.)
$85.11 billion (31 December 2016 est.)
Stock of broad money$126.5 billion (31 December 2017 est.)
$125 billion (31 December 2016 est.)
Stock of domestic credit$105.8 billion (31 December 2017 est.)
$86.53 billion (31 December 2016 est.)
Market value of publicly traded shares$NA
Agriculture - productswheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle
Industriespetroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
Industrial production growth rate0.9% (2017 est.)
Current Account Balance-$22.87 billion (2017 est.)
-$26.31 billion (2016 est.)
Exports$33.15 billion (2017 est.)
$29.06 billion (2016 est.)
Exports - commoditiespetroleum, natural gas, and petroleum products 97% (2009 est.)
Exports - partnersItaly 17.4%, Spain 12.9%, US 12.9%, France 11.4%, Brazil 5.4%, Netherlands 4.9%, Turkey 4.5%, Canada 4.3% (2016)
Imports$49.99 billion (2017 est.)
$49.43 billion (2016 est.)
Imports - commoditiescapital goods, foodstuffs, consumer goods
Imports - partnersChina 17.8%, France 10.1%, Italy 9.8%, Spain 7.6%, Germany 6.4%, US 4.9%, Turkey 4.1% (2016)
Reserves of foreign exchange and gold$97.67 billion (31 December 2017 est.)
$114.7 billion (31 December 2016 est.)
Debt - external$8.163 billion (31 December 2017 est.)
$5.088 billion (31 December 2016 est.)
Stock of direct foreign investment - at home$26.24 billion (31 December 2017 est.)
$25.74 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$2.123 billion (31 December 2017 est.)
$2.025 billion (31 December 2016 est.)
Exchange ratesAlgerian dinars (DZD) per US dollar -
108.9 (2017 est.)
109.443 (2016 est.)
109.443 (2015 est.)
100.691 (2014 est.)
80.579 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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