Overview: The hydrocarbons sector is the backbone of the economy, accounting for roughly 57% of government revenues, 25% of GDP, and almost all export earnings; Algeria has the fifth largest reserves of natural gas in the world and ranks fourteenth for oil. Algiers' efforts to reform one of the most centrally planned economies in the Arab world began after the 1986 collapse of world oil prices plunged the country into a severe recession. In 1989, the government launched a comprehensive, IMF-supported program to achieve macroeconomic stabilization and to introduce market mechanisms into the economy. Despite substantial progress toward macroeconomic adjustment, in 1992 the reform drive stalled as Algiers became embroiled in political turmoil. In September 1993, a new government was formed, one of whose priorities was the resumption and acceleration of the structural adjustment process. Buffeted by the slump in world oil prices and burdened with a heavy foreign debt, Algiers in 1993 resumed negotiations with the IMF and is on track to conclude a standby arrangement with the Fund in 1994.

National product: GDP - purchasing power equivalent - $89 billion (1993 est.)

National product real growth rate: 1% (1993 est.)

National product per capita: $3,300 (1992 est.)

Inflation rate (consumer prices): 22% (1993 est.)

Unemployment rate: 22% (1993 est.)

Budget:
revenues: $14.4 billion
expenditures: $14.6 billion, including capital expenditures of $3.5 billion (1992 est.)

Exports: $11.4 billion (f.o.b., 1993 est.)
commodities: petroleum and natural gas 97%
partners: Italy 21%, France 16%, US 14%, Germany 13%, Spain 9%

Imports: $9 billion (f.o.b., 1993 est.)
commodities: capital goods 39.7%, food and beverages 21.7%, consumer goods 11.8% (1990)
partners: France 29%, Italy 14%, Spain 9%, US 9%, Germany 7%

External debt: $26 billion (1994)

Industrial production: growth rate NA%

Electricity:
capacity: 6,380,000 kW
production: 16.384 billion kWh
consumption per capita: 630 kWh (1992)

Industries: petroleum, light industries, natural gas, mining, electrical, petrochemical, food processing

Agriculture: accounts for 12.8% of GDP (1993 est.) and employs 22% of labor force; products- wheat, barley, oats, grapes, olives, citrus, fruits, sheep, cattle; net importer of food - grain, vegetable oil, sugar

Economic aid:
recipient: US commitments, including Ex-Im (FY70-85), $1.4 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $925 million; OPEC bilateral aid (1979-89), $1.8 billion; Communist countries (1970-89), $2.7 billion; net official disbursements (1985-89), $375 million

Currency: 1 Algerian dinar (DA) = 100 centimes
Exchange rates: Algerian dinars (DA) per US$1 - 36.008 (April 1994), 23.345 (1993), 21.836 (1992), 18.473 (1991), 8.958 (1990), 7.6086 (1989)

Fiscal year: calendar year

NOTE: The information regarding Algeria on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Algeria Economy 1995 information contained here. All suggestions for corrections of any errors about Algeria Economy 1995 should be addressed to the CIA.