Flag of Algeria

Algeria Economy Profile

Home > Factbook > Countries > Algeria

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)$495.564 billion (2019 est.)

$491.631 billion (2018 est.)

$485.801 billion (2017 est.)

note: data are in 2017 dollars
GDP (official exchange rate)$169.912 billion (2019 est.)
GDP - real growth rate1.4% (2017 est.)

3.2% (2016 est.)

3.7% (2015 est.)
GDP - per capita (PPP)$11,511 (2019 est.)

$11,642 (2018 est.)

$11,737 (2017 est.)

note: data are in 2017 dollars
Gross national saving38.8% of GDP (2017 est.)

37.4% of GDP (2016 est.)

36.4% of GDP (2015 est.)
GDP - composition, by end usehousehold 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 sectoragriculture: 13.3% (2017 est.)

industry: 39.3% (2017 est.)

services: 47.4% (2017 est.)
Ease of Doing Business Index scoresOverall score: 48.6 (2020)

Starting a Business score: 78 (2020)

Trading score: 38.4 (2020)

Enforcement score: 54.8 (2020)
Population below poverty line5.5% (2011 est.)
Labor force10.859 million (2017 est.)
Labor force - by occupationagriculture: 10.8%

industry: 30.9%

services: 58.4% (2011 est.)
Unemployment rate11.7% (2017 est.)

10.5% (2016 est.)
Unemployment, youth ages 15-24total: 39.3%

male: 33.1%

female: 82% (2017 est.)
Household income or consumption by percentage sharelowest 10%: 2.8%

highest 10%: 26.8% (1995)
Distribution of family income - Gini index27.6 (2011 est.)
Budgetrevenues: 54.15 billion (2017 est.)

expenditures: 70.2 billion (2017 est.)
Taxes and other revenues32.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-9.6% (of GDP) (2017 est.)
Public debt27.5% 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)1.9% (2019 est.)

4.2% (2018 est.)

5.6% (2017 est.)
Agriculture - productspotatoes, wheat, milk, watermelons, barley, onions, tomatoes, oranges, dates, vegetables
Industriespetroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
Industrial production growth rate0.6% (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 - commoditiescrude petroleum, natural gas, refined petroleum, fertilizers, ammonia (2019)
Exports - partnersItaly 13%, France 13%, Spain 12%, United States 7%, United Kingdom 7%, India 5%, South Korea 5% (2019)
Imports$48.54 billion (2017 est.)

$49.43 billion (2016 est.)
Imports - commoditiesrefined petroleum, wheat, packaged medical supplies, milk, vehicle parts (2019)
Imports - partnersChina 18%, France 14%, Italy 8%, Spain 8%, Germany 5%, Turkey 5% (2019)
Reserves of foreign exchange and gold$97.89 billion (31 December 2017 est.)

$114.7 billion (31 December 2016 est.)
Debt - external$5.574 billion (2019 est.)

$5.666 billion (2018 est.)
Exchange ratesAlgerian 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 year

Source: CIA World Factbook
This page was last updated on September 18, 2021

Economy Comparison