Algeria

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Chapter | Country Profile from The Report: Algeria 2012

Algeria is the largest African country by geographical size, as well as the largest country in the Mediterranean region. Although 85% of the country is desert, Algeria is topographically diverse, in particular in the north, which consists of the Tell Atlas, the High Plateaux and the Saharan Atlas. Roughly 91% of the population lives in less than 13% of the country’s territory, mostly in the north...

Oil and gas production continues to dominate the Algerian economy, accounting for almost all of exports, close to half of government revenue and over a third of GDP. In recent years non-hydrocarbons GDP has outstripped wider economic growth, though this is largely driven by public spending rather than private sector activity.

Africa has undergone an economic transformation over the past decade. While there is wide variation among the continent’s markets, its frontier economies have been among the fastest-growing worldwide, in a trend that will likely continue over the next decade. That growth is unlocking opportunities in sectors new and old  – one of the reasons why Africa offers one of the highest rates of return of developing regions.

North Africa has been through a turbulent few years following the Arab Spring, although the region’s economies have navigated the subsequent challenges in very different ways. While exogenous pressures have constrained policy flexibility and fiscal space, the region’s long-term fundamentals are robust. Growth rates remain stable and new reforms are attracting capital into secondary and tertiary sectors.

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