The collapse in oil prices has weighed on the Algerian economy, giving rise to twin deficits in the budget and current account. In mid-2016 the government introduced a bold medium-term plan that targets a balanced budget by 2020, alongside a new growth model with a strategy for economic development and diversification by 2030. These moves have coincided with the private sector playing a much stronger role in the economy.
A long-term structural shift is under way in the Algerian economy. Having stood at 42% in 2000, the private sector’s economic contribution grew to 70% of GDP by 2015, with economic output increasing four-fold over the same timeframe. And while the government was largely able to attenuate the impact of lower oil prices on its finances by drawing from the oil stabilisation fund, the unveiling of the country’s new economic development plan in 2016 was both a timely response to the challenges posed by the oil price collapse, and an important strategic effort to engender a more diversified, dynamic and self-sufficient economy by 2030.
Making progress: President Abdelaziz Bouteflika, on promoting economic growth and encouraging...
New areas of cooperation: Dmitry Medvedev, Prime Minister of Russia, on strengthening economic ties...
Exchange economy: Angelino Alfano, Minister of Foreign Affairs of Italy, on the scope of relations...
A time of change: Lord Richard Risby of Haverhill, Special Envoy of the UK Prime Minister in...
Seeking alternatives: Abderrahmane Raouya, Minister of Finance, on stimulating the economy and the...
Collaborative vision: Abdelkader Zoukh, Wali of Algiers, on how smart city developments are...
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