Country Profile

Since achieving independence in 1962, Algeria has pursued an activist foreign policy, pushing interests of developing countries through the Non-Aligned Movement, as well as in groups like the G-77. Algeria holds close trading links with its Mediterranean neighbours to the north, and is an important source of EU natural gas imports, particularly to France, Spain and Italy. The country has greatly increased its diplomatic and economic relations with China, which has become an important source of official development finance and discounted lending. Moreover, the state continues to play a dominant role in the Algerian economy, depending on oil and gas exports for some 60% of public revenue and 96% of exports. The sharp decline in global oil prices since 2014 resulted in several challenging years for the Algerian economy. This chapter contains interviews with President Abdelaziz Bouteflika; Ferid Belhaj, Vice-President for MENA, World Bank; and a viewpoint with Xi Jinping, President of the People’s Republic of China.