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Algeria vs. Niger

Economy

AlgeriaNiger
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.

Niger is a landlocked, Sub-Saharan nation, whose economy centers on subsistence crops, livestock, and some of the world's largest uranium deposits. Agriculture contributes approximately 40% of GDP and provides livelihood for over 80% of the population. The UN ranked Niger as the second least developed country in the world in 2016 due to multiple factors such as food insecurity, lack of industry, high population growth, a weak educational sector, and few prospects for work outside of subsistence farming and herding.

Since 2011 public debt has increased due to efforts to scale-up public investment, particularly that related to infrastructure, as well as due to increased security spending. The government relies on foreign donor resources for a large portion of its fiscal budget. The economy in recent years has been hurt by terrorist activity near its uranium mines and by instability in Mali and in the Diffa region of the country; concerns about security have resulted in increased support from regional and international partners on defense. Low uranium prices, demographics, and security expenditures may continue to put pressure on the government's finances.

The Government of Niger plans to exploit oil, gold, coal, and other mineral resources to sustain future growth. Although Niger has sizable reserves of oil, the prolonged drop in oil prices has reduced profitability. Food insecurity and drought remain perennial problems for Niger, and the government plans to invest more in irrigation. Niger's three-year $131 million IMF Extended Credit Facility (ECF) agreement for the years 2012-15 was extended until the end of 2016. In February 2017, the IMF approved a new 3-year $134 million ECF. In June 2017, The World Bank's International Development Association (IDA) granted Niger $1 billion over three years for IDA18, a program to boost the country's development and alleviate poverty. A $437 million Millennium Challenge Account compact for Niger, commencing in FY18, will focus on large-scale irrigation infrastructure development and community-based, climate-resilient agriculture, while promoting sustainable increases in agricultural productivity and sales.

Formal private sector investment needed for economic diversification and growth remains a challenge, given the country's limited domestic markets, access to credit, and competitiveness. Although President ISSOUFOU is courting foreign investors, including those from the US, as of April 2017, there were no US firms operating in Niger. In November 2017, the National Assembly passed the 2018 Finance Law that was geared towards raising government revenues and moving away from international support.

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
$28.544 billion (2019 est.)

$26.953 billion (2018 est.)

$25.138 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate1.4% (2017 est.)

3.2% (2016 est.)

3.7% (2015 est.)
4.9% (2017 est.)

4.9% (2016 est.)

4.3% (2015 est.)
GDP - per capita (PPP)$11,511 (2019 est.)

$11,642 (2018 est.)

$11,737 (2017 est.)

note: data are in 2017 dollars
$1,225 (2019 est.)

$1,201 (2018 est.)

$1,164 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 13.3% (2017 est.)

industry: 39.3% (2017 est.)

services: 47.4% (2017 est.)
agriculture: 41.6% (2017 est.)

industry: 19.5% (2017 est.)

services: 38.7% (2017 est.)
Population below poverty line5.5% (2011 est.)40.8% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 2.8%

highest 10%: 26.8% (1995)
lowest 10%: 3.2%

highest 10%: 26.8% (2014)
Inflation rate (consumer prices)1.9% (2019 est.)

4.2% (2018 est.)

5.6% (2017 est.)
-2.5% (2019 est.)

6.3% (2018 est.)

2.3% (2017 est.)
Labor force10.859 million (2017 est.)6.5 million (2017 est.)
Labor force - by occupationagriculture: 10.8%

industry: 30.9%

services: 58.4% (2011 est.)
agriculture: 79.2%

industry: 3.3%

services: 17.5% (2012 est.)
Unemployment rate11.7% (2017 est.)

10.5% (2016 est.)
0.3% (2017 est.)

0.3% (2016 est.)
Distribution of family income - Gini index27.6 (2011 est.)34.3 (2014 est.)

50.5 (1995)
Budgetrevenues: 54.15 billion (2017 est.)

expenditures: 70.2 billion (2017 est.)
revenues: 1.757 billion (2017 est.)

expenditures: 2.171 billion (2017 est.)
Industriespetroleum, natural gas, light industries, mining, electrical, petrochemical, food processinguranium mining, petroleum, cement, brick, soap, textiles, food processing, chemicals, slaughterhouses
Industrial production growth rate0.6% (2017 est.)6% (2017 est.)
Agriculture - productspotatoes, wheat, milk, watermelons, barley, onions, tomatoes, oranges, dates, vegetablesmillet, cow peas, sorghum, onions, milk, groundnuts, cassava, cabbages, goat milk, fruit
Exports$34.37 billion (2017 est.)

$29.06 billion (2016 est.)
$1.525 billion (2018 est.)

$1.466 billion (2017 est.)
Exports - commoditiescrude petroleum, natural gas, refined petroleum, fertilizers, ammonia (2019)gold, sesame seeds, uranium, natural gas, refined petroleum (2019)
Exports - partnersItaly 13%, France 13%, Spain 12%, United States 7%, United Kingdom 7%, India 5%, South Korea 5% (2019)United Arab Emirates 54%, China 25%, France 7%, Pakistan 5% (2019)
Imports$48.54 billion (2017 est.)

$49.43 billion (2016 est.)
$2.999 billion (2018 est.)

$2.88 billion (2017 est.)
Imports - commoditiesrefined petroleum, wheat, packaged medical supplies, milk, vehicle parts (2019)rice, packaged medicines, palm oil, cars, cement (2019)
Imports - partnersChina 18%, France 14%, Italy 8%, Spain 8%, Germany 5%, Turkey 5% (2019)China 19%, France 9%, United Arab Emirates 7%, Cote d'Ivoire 6%, India 6%, Nigeria 5%, Togo 5%, Turkey 5% (2019)
Debt - external$5.574 billion (2019 est.)

$5.666 billion (2018 est.)
$3.728 billion (31 December 2017 est.)

$2.926 billion (31 December 2016 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.)
Communaute 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.)
Fiscal yearcalendar yearcalendar year
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
45.3% of GDP (2017 est.)

45.2% of GDP (2016 est.)
Reserves of foreign exchange and gold$97.89 billion (31 December 2017 est.)

$114.7 billion (31 December 2016 est.)
$1.314 billion (31 December 2017 est.)

$1.186 billion (31 December 2016 est.)
Current Account Balance-$22.1 billion (2017 est.)

-$26.47 billion (2016 est.)
-$1.16 billion (2017 est.)

-$1.181 billion (2016 est.)
GDP (official exchange rate)$169.912 billion (2019 est.)$12.926 billion (2019 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)
Overall score: 56.8 (2020)

Starting a Business score: 91.5 (2020)

Trading score: 65.4 (2020)

Enforcement score: 54.7 (2020)
Taxes and other revenues32.3% (of GDP) (2017 est.)21.4% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-9.6% (of GDP) (2017 est.)-5% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 39.3%

male: 33.1%

female: 82% (2017 est.)
total: 16.6%

male: 16.1%

female: 17.5% (2017 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.)
household consumption: 70.2% (2017 est.)

government consumption: 9.4% (2017 est.)

investment in fixed capital: 38.6% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 16.4% (2017 est.)

imports of goods and services: -34.6% (2017 est.)
Gross national saving38.8% of GDP (2017 est.)

37.4% of GDP (2016 est.)

36.4% of GDP (2015 est.)
22.1% of GDP (2018 est.)

20.1% of GDP (2017 est.)

21.2% of GDP (2015 est.)

Source: CIA Factbook