Algeria Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$468.4 billion (2020 est.)

$495.56 billion (2019 est.)

$491.63 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

1.4% (2017 est.)

3.2% (2016 est.)

3.7% (2015 est.)

Real GDP per capita

$10,700 (2020 est.)

$11,500 (2019 est.)

$11,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$169.912 billion (2019 est.)

Inflation rate (consumer prices)

1.9% (2019 est.)

4.2% (2018 est.)

5.6% (2017 est.)

Credit ratings

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 13.3% (2017 est.)

industry: 39.3% (2017 est.)

services: 47.4% (2017 est.)

GDP - composition, by end use

household consumption: 42.7% (2017 est.)

government consumption: 20.2% (2017 est.)

investment in fixed capital: 38.1% (2017 est.)

investment in inventories: 11.2% (2017 est.)

exports of goods and services: 23.6% (2017 est.)

imports of goods and services: -35.8% (2017 est.)

Agricultural products

potatoes, wheat, milk, watermelons, barley, onions, tomatoes, oranges, dates, vegetables

Industries

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

Industrial production growth rate

0.6% (2017 est.)

Labor force

10.859 million (2017 est.)

Labor force - by occupation

agriculture: 10.8%

industry: 30.9%

services: 58.4% (2011 est.)

Unemployment rate

11.7% (2017 est.)

10.5% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 39.3%

male: 33.1%

female: 82% (2017 est.)

Population below poverty line

5.5% (2011 est.)

Gini Index coefficient - distribution of family income

27.6 (2011 est.)

Household income or consumption by percentage share

lowest 10%: 2.8%

highest 10%: 26.8% (1995)

Budget

revenues: 54.15 billion (2017 est.)

expenditures: 70.2 billion (2017 est.)

Budget surplus (+) or deficit (-)

-9.6% (of GDP) (2017 est.)

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

Taxes and other revenues

32.3% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$22.1 billion (2017 est.)

-$26.47 billion (2016 est.)

Exports

$38.32 billion (2019 est.)

$44.39 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Italy 13%, France 13%, Spain 12%, United States 7%, United Kingdom 7%, India 5%, South Korea 5% (2019)

Exports - commodities

crude petroleum, natural gas, refined petroleum, fertilizers, ammonia (2019)

Imports

$54.26 billion (2019 est.) note: data are in current year dollars

$60.05 billion (2018 est.) note: data are in current year dollars

Imports - partners

China 18%, France 14%, Italy 8%, Spain 8%, Germany 5%, Turkey 5% (2019)

Imports - commodities

refined petroleum, wheat, packaged medical supplies, milk, vehicle parts (2019)

Reserves of foreign exchange and gold

$97.89 billion (31 December 2017 est.)

$114.7 billion (31 December 2016 est.)

Debt - external

$5.574 billion (2019 est.)

$5.666 billion (2018 est.)

Exchange rates

Algerian dinars (DZD) per US dollar -

131.085 (2020 est.)

119.775 (2019 est.)

118.4617 (2018 est.)

100.691 (2014 est.)

80.579 (2013 est.)

NOTE: The information regarding Algeria on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Algeria 2022 information contained here. All suggestions for corrections of any errors about Algeria 2022 should be addressed to the CIA or the source cited on each page.