Given that Algeria’s hydrocarbons sector accounted for more than half of government revenues in 2014, it is hardly surprising that the collapse in oil prices from 2014 onward has hit public finances. From 8% of GDP in 2014, the deficit ballooned to 15.8% in 2015, before moderating to an estimated 14% in 2016. Algeria was able to postpone the...
Algeria has long had complicated foreign relations, having tense ties with neighbouring Morocco, which has held back regional integration, while at the same time having strong trade relations with the EU, with which it signed a free trade accord in 2002. However, its international profile is in the midst of a gradual shift, as it seeks to...
The collapse in oil prices has weighed heavily on the Algerian economy, giving rise to wide twin deficits in the budget and current account. Given that the state is still heavily involved in the non-hydrocarbons sector of the economy, but depends on hydrocarbons exports for the bulk of its revenues, it is unsurprising that efforts to close the...
With an area of 2.38m sq km, Algeria became the largest country in Africa when the Republic of South Sudan gained its independence from Sudan in 2011. Located in the Maghreb region of North Africa, it has a Mediterranean coastline of just under 1000 km and land borders with seven countries and territories – Libya, Mali, Mauritania, Morocco,...
With traditional lending constrained by lower hydrocarbons receipts, public authorities are redoubling their efforts to develop Algeria’s capital markets. By encouraging listings on the country’s equity and debt markets, officials are looking to relieve pressure on the national Treasury and create new investment opportunities for financial...
As part of steps to reduce the country’s economic reliance on oil and gas production, Algeria’s parliament in mid-July 2016 passed a law aimed at attracting new private sector investment by modifying the national investment promotion framework, which dates from 2001. The law is due to be implemented by the end of 2016. In keeping with this...
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