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Algeria Economy Profile 2019

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Economy - overview

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)
$630 billion (2017 est.)
$621.3 billion (2016 est.)
$602 billion (2015 est.)

note: data are in 2017 dollars

GDP (official exchange rate)
$167.6 billion (2017 est.)
GDP - real growth rate
1.4% (2017 est.)
3.2% (2016 est.)
3.7% (2015 est.)
GDP - per capita (PPP)
$15,200 (2017 est.)
$15,200 (2016 est.)
$15,100 (2015 est.)

note: data are in 2017 dollars

Gross national saving
37.8% of GDP (2017 est.)
37.4% of GDP (2016 est.)
36.4% of GDP (2015 est.)
GDP - composition, by end use
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.)
GDP - composition by sector
agriculture: 13.3% (2017 est.)
industry: 39.3% (2017 est.)
services: 47.4% (2017 est.)
Population below poverty line
23% (2006 est.)
Labor force
11.82 million (2017 est.)
Labor force - by occupation
agriculture: 10.8%
industry: 30.9%
services: 58.4% (2011 est.)
Unemployment rate
11.7% (2017 est.)
10.5% (2016 est.)
Unemployment, youth ages 15-24
total: 25.7%
male: 22.1%
female: 44.9% (2016 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)
Budget
revenues: 54.15 billion (2017 est.)
expenditures: 70.2 billion (2017 est.)
Taxes and other revenues
32.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-9.6% (of GDP) (2017 est.)
Public debt
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

Inflation rate (consumer prices)
5.6% (2017 est.)
6.4% (2016 est.)
Central bank discount rate
4% (31 December 2010)
4% (31 December 2009)
Commercial bank prime lending rate
8% (31 December 2017 est.)
8% (31 December 2016 est.)
Stock of narrow money
$84.56 billion (31 December 2017 est.)
$85.21 billion (31 December 2016 est.)
Stock of broad money
$84.56 billion (31 December 2017 est.)
$85.21 billion (31 December 2016 est.)
Stock of domestic credit
$110.2 billion (31 December 2017 est.)
$86.63 billion (31 December 2016 est.)
Market value of publicly traded shares

NA

Agriculture - products
wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle
Industries
petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
Industrial production growth rate
0.6% (2017 est.)
Current Account Balance
-$22.1 billion (2017 est.)
-$26.47 billion (2016 est.)
Exports
$34.37 billion (2017 est.)
$29.06 billion (2016 est.)
Exports - commodities
petroleum, natural gas, and petroleum products 97% (2009 est.)
Exports - partners
Italy 17.4%, Spain 13%, France 11.9%, US 9.4%, Brazil 6.2%, Netherlands 5.5% (2017)
Imports
$48.54 billion (2017 est.)
$49.43 billion (2016 est.)
Imports - commodities
capital goods, foodstuffs, consumer goods
Imports - partners
China 18.2%, France 9.1%, Italy 8%, Germany 7%, Spain 6.9%, Turkey 4.4% (2017)
Reserves of foreign exchange and gold
$97.89 billion (31 December 2017 est.)
$114.7 billion (31 December 2016 est.)
Debt - external
$6.26 billion (31 December 2017 est.)
$5.088 billion (31 December 2016 est.)
Stock of direct foreign investment - at home
$29.05 billion (31 December 2017 est.)
$25.74 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad
$1.893 billion (31 December 2017 est.)
$2.025 billion (31 December 2016 est.)
Exchange rates
Algerian 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 year
calendar year

Source: CIA World Factbook
This page was last updated on December 7, 2019

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