Algeria Economy

Algeria’s trade patterns have long been quite stable, with exports relying overwhelmingly (97%) on hydrocarbons and trade with the EU accounting for roughly half of the total. Bolstered by still-high oil prices into the first half of 2013, Algeria maintains beneficial terms of trade that allow it to run a consistent surplus.

Even amidst the constant change that now characterises North Africa, Algeria has charted a path of relative stability. This is largely due to its natural riches, with a vast array of oil and gas resources, that have made Algeria the fourth-largest economy on the continent after South Africa, Nigeria and Egypt, and the second-largest in North...

Strategically central to the larger Kabylie region, the wilaya, or province, of Béjaïa has long benefitted from the area’s agricultural richesse – a fact that is perhaps surprising given the large swathes of dense forest and mountains that cover much of the region’s interior. As a result of the difficult geography, mechanised production...

Following three years of rapid fiscal expansion, in 2013 Algeria’s government began attempting to consolidate its budget spending and raise domestic revenue. While the outlook for the non-hydrocarbons segment remains somewhat uncertain, authorities plan to continue limiting government expenditures to help guarantee the country’s fiscal...

Algeria’s foreign relations are transforming as the country expands its trade and economic partnerships outside of Europe and North America and assumes a greater role in regional political and security issues.

Since the country gained independence more than 50 years ago, Algeria’s economy has evolved significantly, but it has only been in recent years that its heft as an investment destination has tangibly changed, and for the better. Algeria has been following something of a contrary approach to much of the rest of the world over the past few years. Even...