Africa Economy

In many senses, Algeria finds itself in a strong economic position, particularly when compared with its regional neighbours. It holds the fourth-largest oil reserves and the second-largest natural gas reserves in Africa. After years of sustained high oil prices and a comparatively prudent fiscal policy – albeit balanced on a high breakeven price – it has built up...

After decades of non-alignment during the Cold War, the development of Algeria’s foreign relations has taken on a decidedly liberal economic character. The country is expanding its links with foreign partners in an effort to develop a diversified, knowledge-based economy and has also redoubled efforts to advance its bid to join the World Trade Organisation (WTO)....

Over the past few years, Algeria has made significant economic progress and achieved many positive indicators. From 2010 to 2014, the country’s GDP shows an average increase of 4%, while inflation was brought under control and is now down to around 3.5%. The unemployment rate, meanwhile, has declined significantly, from 29.5% in 2000 to 9.8% in 2013.

Algeria has notable geographic, demographic and cultural diversity. Its territory reaches from the Mediterranean Coast to the depths of the Sahara Desert, and its population includes a blend of Arab and Berber linguistic and cultural traditions. Economic development has been driven by oil and gas, which today still account for 30% of GDP, 60% of budget revenue and 97% of...