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Panorama econòmic

Economic indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Algerian economy is mainly driven by hydrocarbons and public investment. Hydrocarbons account for 40% of GDP, 94% of exports and one third of fiscal revenues. Algeria’s economic growth was already weakened by the negative trend in hydrocarbon production and prices, the lack of economic diversification and political uncertainty before the outbreak of COVID-19 pandemic. In 2020, GDP contracted by an estimated -4.9% (IMF), hit by the additional shock of the health crisis. Higher oil prices and strong European demand for gas supported the recovery in 2021. According to IMF estimates, GDP growth rebounded to 3.4% in 2021, and is expected to slow down to 1.9% in 2022 and 1.7% in 2023. Tougher base effect and tighter fiscal policy explain this slower activity (Focus Economics). Oil prices volatility, the apparition of new virus variants and social and geopolitical tensions are the main downside risks to the outlook (IMF).

Algeria’s economy was hardly hit by the combined effect of declining hydrocarbon revenues and the COVID-19 pandemic. It started to recover in 2021 thanks to the relaxation of containment measures and a rebound in hydrocarbon prices and production, but the crisis has increased Algeria’s ongoing economic vulnerabilities. Continued large fiscal and external current account deficits have reduced policy space as public debt increased significantly and international reserves declined (IMF). Budget deficit reached an estimated -11.8% GDP in 2021, and is forecast to remain at that high level in 2022 (IMF). Public debt is soaring, estimated at 58.5% GDP in 2021, 63.2% GDP in 2022 and 68.2% GDP in 2023 (IMF). Algeria’s external debt level is at low levels but could increase in the event of adverse shocks or increased fiscal deficits (Euler Hermes). International reserves are depleted. At the end of 2021, foreign exchange reserves stood at USD 43 billion, covering around 11 months of imports. The IMF is expecting a continued depletion of international reserves to USD 12 billion (only 3 months of import coverage) by 2026 (Euler Hermes). Inflationary pressures have intensified since the end of 2020 due to higher international food prices and an episode of drought. Estimated at 6.5% in 2021, it is forecast to increase to 7.6% in 2022 and to decrease slightly to 6.3% in 2023 (IMF). The authorities are following a gradual and sustained fiscal consolidation, adjusted to the evolution of the pandemic and to domestic economic conditions. The new Government Action Plan comprises a wide range of reforms to support the transition towards a more diversified and sustainable economy and bolster governance and social cohesion. The country is looking for ways to reduce its dependence on gas for power generation by investing in solar energy.

According to IMF estimates, unemployment hit 14.1% of the population in 2021, and will further increase to 14.7% in 2022 and 15.5% in 2023. Employment and purchasing power deteriorated drastically since the Covid-19 crisis. According to the World Bank, unemployment is highest among youth, women and graduates due to skills mismatch in the labour market. There are also big differences between living conditions in cities and rural areas. Instability caused by radical groups on Algeria's borders remains a risk factor.

 
GDP Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 171.07e147.60e163.81168.20172.09
GDP (constant prices, annual % change) 0.8e-4.9e3.41.91.7
GDP per capita (USD) 3,940e3,337e3,6383,6723,697
General government gross debt (in % of GDP) 45.855.6e58.563.268.2
Inflation rate (%) 2.02.4e7.28.78.2
Unemployment rate (% of the labor force) 11.414.0e14.114.715.5
Current Account (billions USD) -16.96-18.71e-12.49-9.19-9.08
Current account (in % of GDP) -9.9-12.7e-7.6-5.5-5.3

Font: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated data

 
Monetary indicators 20162017201820192020
Algerian Dinar (DZD) - Average annual exchange rate for 1 EUR 116.43125.36137.57134.16144.80

Font: World Bank, 2015

 

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Actualitzacions: September 2022

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