Algeria Economy - 2006

Economy - overview:
The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the seventh-largest reserves of natural gas in the world and is the second-largest gas exporter; it ranks 14th in oil reserves. Sustained high oil prices in recent years, along with macroeconomic policy reforms supported by the IMF, have helped improve Algeria's financial and macroeconomic indicators. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success in reducing high unemployment and improving living standards. The population is becoming increasingly restive due to the lack of jobs and housing and frequently stages protests, which have resulted in arrests and injuries, including some deaths as government forces intervened to restore order. Structural reform within the economy, such as development of the banking sector and the construction of infrastructure, moves ahead slowly hampered by corruption and bureaucratic resistance.

GDP (purchasing power parity):
$233.9 billion (2005 est.)

GDP (official exchange rate):
$86.37 billion (2005 est.)

GDP - real growth rate:
6% (2005 est.)

GDP - per capita (PPP):
$7,200 (2005 est.)

GDP - composition by sector:
agriculture: 10%
industry: 59.5%
services: 30.5% (2005 est.)

Labor force:
10.15 million (2005 est.)

Labor force - by occupation:
agriculture 14%, industry 13.4%, construction and public works 10%, trade 14.6%, government 32%, other 16% (2003 est.)

Unemployment rate:
22.5% (2005 est.)

Population below poverty line:
25% (2005 est.)

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 26.8% (1995)

Distribution of family income - Gini index:
35.3 (1995)

Inflation rate (consumer prices):
4.7% (2005 est.)

Investment (gross fixed):
22.8% of GDP (2005 est.)

Budget:
revenues: $42.05 billion
expenditures: $30.75 billion; including capital expenditures of $5.8 billion (2005 est.)

Public debt:
14.8% of GDP (2005 est.)

Agriculture - products:
wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle

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

Industrial production growth rate:
25.5% (2005 est.)

Electricity - production:
26.99 billion kWh (2003 est.)

Electricity - consumption:
24.9 billion kWh (2003 est.)

Electricity - exports:
400 million kWh (2003 est.)

Electricity - imports:
200 million kWh (2003 est.)

Oil - production:
1.373 million bbl/day (2005 est.)

Oil - consumption:
246,000 bbl/day (2004 est.)

Oil - exports:
1.127 million bbl/day (2004 est.)

Oil - imports:
0 bbl/day (2004 est.)

Oil - proved reserves:
12.46 billion bbl (2005 est.)

Natural gas - production:
82.4 billion cu m (2003 est.)

Natural gas - consumption:
21.32 billion cu m (2003 est.)

Natural gas - exports:
57.98 billion cu m (2001 est.)

Natural gas - imports:
0 cu m (2005 est.)

Natural gas - proved reserves:
4.531 trillion cu m (2005)

Current account balance:
$21.83 billion (2005 est.)

Exports:
$49.59 billion f.o.b. (2005 est.)

Exports - commodities:
petroleum, natural gas, and petroleum products 97%

Exports - partners:
US 22.6%, Italy 17.2%, France 11.4%, Spain 10.1%, Canada 7.5%, Brazil 6.1%, Belgium 4.6% (2004)

Imports:
$22.53 billion f.o.b. (2005 est.)

Imports - commodities:
capital goods, foodstuffs, consumer goods

Imports - partners:
France 30.3%, Italy 8.2%, Germany 6.5%, Spain 5.4%, US 5.2%, China 5.1%, Turkey 4.3% (2004)

Reserves of foreign exchange and gold:
$61.01 billion (2005 est.)

Debt - external:
$21.54 billion (2005 est.)

Economic aid - recipient:
$122.8 million (2002 est.)

Currency (code):
Algerian dinar (DZD)

Exchange rates:
Algerian dinars per US dollar - 73.276 (2005), 72.061 (2004), 77.395 (2003), 79.682 (2002), 77.215 (2001)