Economy - overview:
Algeria's economy remains dominated by the state, a legacy of the country's socialist post-independence development model. In recent years the Algerian Government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy, pursuing an explicit import substitution policy.

Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of GDP, 60% of budget revenues, and nearly 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world - including the 3rd-largest reserves of shale gas - and is the 6th-largest gas exporter. It ranks 16th in proven oil reserves. Hydrocarbon exports enabled Algeria to maintain macroeconomic stability, amass large foreign currency reserves, and maintain low external debt while global oil prices were high. With lower oil prices since 2014, Algeria’s foreign exchange reserves have declined by more than half and its oil stabilization fund has decreased from about $20 billion at the end of 2013 to about $7 billion in 2017, which is the statutory minimum.

Declining oil prices have also reduced the government’s ability to use state-driven growth to distribute rents and fund generous public subsidies, and the government has been under pressure to reduce spending. Over the past three years, the government has enacted incremental increases in some taxes, resulting in modest increases in prices for gasoline, cigarettes, alcohol, and certain imported goods, but it has refrained from reducing subsidies, particularly for education, healthcare, and housing programs.

Algiers has increased protectionist measures since 2015 to limit its import bill and encourage domestic production of non-oil and gas industries. Since 2015, the government has imposed additional restrictions on access to foreign exchange for imports, and import quotas for specific products, such as cars. In January 2018 the government imposed an indefinite suspension on the importation of roughly 850 products, subject to periodic review.

President BOUTEFLIKA announced in fall 2017 that Algeria intends to develop its non-conventional energy resources. Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth. Algeria has not increased non-hydrocarbon exports, and hydrocarbon exports have declined because of field depletion and increased domestic demand.

GDP (purchasing power parity):
$630 billion (2017 est.)
$621.3 billion (2016 est.)
$602 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 36
[see also: GDP country ranks ]

GDP (official exchange rate):
$167.6 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
1.4% (2017 est.)
3.2% (2016 est.)
3.7% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 174
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$15,200 (2017 est.)
$15,200 (2016 est.)
$15,100 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 109
[see also: GDP - per capita country ranks ]

Gross national saving:
37.8% of GDP (2017 est.)
37.4% of GDP (2016 est.)
36.4% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 13
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 42.7% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 20.2% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 38.1% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 11.2% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 23.6% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -35.8% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 13.3% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 39.3% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 47.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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:
0.6% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 164
[see also: Industrial production growth rate country ranks ]

Labor force:
11.82 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 50
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 10.8%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 30.9%
[see also: Labor force - by occupation - industry country ranks ]
services: 58.4% (2011 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
11.7% (2017 est.)
10.5% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 155
[see also: Unemployment rate country ranks ]

Population below poverty line:
23% (2006 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.8%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 26.8% (1995)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
35.3 (1995)
country comparison to the world (CIA rank, may be based on non-current data): 95
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 54.15 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 70.2 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
32.3% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 67
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-9.6% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 207
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
27.5% of GDP (2017 est.)
20.4% of GDP (2016 est.)
note: data cover central government debt as well as debt issued by subnational entities and intra-governmental debt
country comparison to the world (CIA rank, may be based on non-current data): 170
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
5.6% (2017 est.)
6.4% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 179
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
4% (31 December 2010)
4% (31 December 2009)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
8% (31 December 2017 est.)
8% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 109
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$84.56 billion (31 December 2017 est.)
$85.21 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 44
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$84.56 billion (31 December 2017 est.)
$85.21 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 44
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$110.2 billion (31 December 2017 est.)
$86.63 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 54
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$22.1 billion (2017 est.)
-$26.47 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 199
[see also: Current account balance country ranks ]

Exports:
$34.37 billion (2017 est.)
$29.06 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 58
[see also: Exports country ranks ]

Exports - partners:
Italy 17.4%, Spain 13%, France 11.9%, US 9.4%, Brazil 6.2%, Netherlands 5.5% (2017)

Exports - commodities:
petroleum, natural gas, and petroleum products 97% (2009 est.)

Imports:
$48.54 billion (2017 est.)
$49.43 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 55
[see also: Imports country ranks ]

Imports - commodities:
capital goods, foodstuffs, consumer goods

Imports - partners:
China 18.2%, France 9.1%, Italy 8%, Germany 7%, Spain 6.9%, Turkey 4.4% (2017)

Reserves of foreign exchange and gold:
$97.89 billion (31 December 2017 est.)
$114.7 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 26
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$6.26 billion (31 December 2017 est.)
$5.088 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 128
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$29.05 billion (31 December 2017 est.)
$25.74 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 72
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.893 billion (31 December 2017 est.)
$2.025 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 85
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Algerian dinars (DZD) per US dollar -
108.9 (2017 est.)
109.443 (2016 est.)
109.443 (2015 est.)
100.691 (2014 est.)
80.579 (2013 est.)