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flag Algeria Algeria: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

After having slowed down due to the global economic crisis and a drop in the prices of oil and gas, the Algerian economy resumed its growth in 2010. Driven by the resumption of demand in the hydrocarbon sector and the strong performance of the service and construction sectors, aided by a program of public investment (PIP), growth reached 3.8% in 2010 (compared to 2.4% in 2009) and should continue in 2011.

In order to promote the growth of the domestic market, the Algerian government has launched a major construction policy, namely in the sector of transport infrastructures. Today, this policy is criticized because of two reasons. Firstly, at the time this program was started, the price of the oil barrel was very high. Current global market conditions have changed considerably and some observers question the suitability of this policy. More so because Algeria is running on a "negative multiplier", which means that the resources injected into the economy are much higher than the wealth generated. The new five-year plan for 2010-2014, which follows in the direction of the previous one, emphasizes modernization the infrastructures and privatization of the economy.

The current unemployment rate in Algeria is officially at 10% but some claim it is closer to 20%. The per capita GDP was USD 4,600 in 2008. It should be noted that there is a large discrepancy between the urban and rural living conditions.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 139.76e157.76e183.42e188.59196.29
GDP (Constant Prices, Annual % Change) 2.43.3e2.93.33.4
GDP per Capita (USD) 3,926e4,366e5,0015,0665,195
General Government Gross Debt (in % of GDP) 10.410.410.710.710.7
Inflation Rate (%) 5.7e3.9e3.9e4.34.0
Unemployment Rate (% of the Labor Force) 10.210.09.89.59.1
Current Account (billions USD) 0.4112.4725.16e20.5718.44
Current Account (in % of GDP) 0.37.9e13.7e9.4-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture contributes about 12% of the GDP and employs almost one fifth of the active population. The main crops are wheat, barley, oats, citrus fruit, wine grapes, olives, tobacco and dates. Algeria produces a large quantity of cork and has a significant amount of livestock farming.

The industry contributes nearly 55% of the GDP and employs a quarter of the population. The oil and gas sector accounts for the majority of budgetary income, and almost all of export income. Algeria is the 2nd biggest gas exporter in the world. It ranks 18th for its petroleum reserves and 10th for its gas reserves. The ores mined in big quantities are iron, lead, phosphate, uranium, zinc, salt and coal. The main activities of the manufacturing sector are industrial food processing, textile, chemical products, metals and construction materials.

The tertiary sector contributes about a third of the GDP and employs more than half of the workforce.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 20.7 26.0 53.0
Value Added (in % of GDP) 11.7 54.5 33.7
Value Added (Annual % Change) 2.0 2.6 2.4

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Algerian Dinar (DZD) - Average Annual Exchange Rate For 1 USD 72.6569.2964.5872.6574.39

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Algeria on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
52.4/100
Position:
Mostly unfree
World Rank:
127/179
Regional Rank:
14/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Algeria has an open economy, foreign trade representing three quarters of the GDP.

Algerian exports grew by 223% between 2002 and 2008, mainly due to the explosion of world’s oil prices, oil representing the near totality of the country’s exports. During this period, the trade balance has generated a significant surplus giving Algeria comfortable foreign currency reserves (USD 150 billion in 2009). Unfortunately, in 2010, the drop in global oil prices and the sustained high levels of imports have lead to a significant worsening of the Algerian trade balance. This should nevertheless remain in surplus in 2011.

The main trade partners of Algeria are the European Union, the NAFTA countries (Free Trade Agreement between United States, Canada, and Mexico) and China.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 21,45627,63139,47939,29440,212
Exports of Goods (million USD) 54,61360,16379,29845,19455,200
Imports of Services (million USD) 4,4926,33410,47311,203-
Exports of Services (million USD) 2,5112,7813,4202,794-
Imports of Goods and Services (Annual % Change) -1.87.66.616.7-
Exports of Goods and Services (Annual % Change) -2.4-0.61.6-3.0-
Imports of Goods and Services (in % of GDP) 21.523.322.936.1-
Exports of Goods and Services (in % of GDP) 48.646.646.340.4-
Trade Balance (million USD) 34,18034,17840,5207,784-
Trade Balance (Including Service) (million USD) 31,94730,24432,928911-
Foreign Trade (in % of GDP) 70.169.969.276.5-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United States 24.2%
Italy 15.4%
Spain 10.4%
Netherlands 7.3%
France 6.6%
See More Countries 36.1%
Main Suppliers
(% of Imports)
2010
France 14.9%
China 11.2%
Italy 10.0%
Spain 6.4%
Germany 5.8%
See More Countries 51.6%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 43.4%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 39.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 14.5%
Oils and other products of the distillation of...Oils and other products of the distillation of high temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents 1.0%
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form 0.4%
See More Products 1.3%
Main Imports
(% of Imports)
2010
Tubes, pipes and hollow profiles, seamless, of...Tubes, pipes and hollow profiles, seamless, of iron or steel (excl. products of cast iron) 4.9%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.6%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.6%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 3.2%
Wheat and meslinWheat and meslin 3.1%
See More Products 81.7%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
The Ministry of Foreign Affairs
The Ministry of Finance
The Ministry of Industry and Restructuration
The Ministry of Share-holdings and Investment Promotion
The Ministry of Commerce
Statistical Office
The National Office of Statistics
Central Bank
The Bank of Algeria
Stock Exchange
The Organization and Monitoring Committee for Stock Exchange Transactions (COSOB)
Search Engines
Algeria Network
Marweb Algérie
Economic Portals
The Algerian portal for political, economic, IT, sports and cultural news in Algeria and worldwide.
Ladoc, portal for Algeria, economic section
Algérie Businessweb, portal for economic and commercial information

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Political Outline

Executive Power
The President of the Republic is the Head of State. He is elected by direct universal suffrage for 5 years. He appoints the Prime Minister and his government at the suggestion of the Prime Minister. The Prime Minister sets the amount of the State's expenses and revenue, and prepares some Bills.
Legislative Power
Parliament is composed of the Council of the Nation and the National Popular Assembly. Senators are elected by indirect universal suffrage for 6 years (renewable every 3 years). Deputies (MPs) are elected by direct universal suffrage. They examine successively Bills and private Bills, vote laws and monitor the government.
Main Political Parties
The main political parties in the country are: the FLN (National Liberation Front) which was previously the only legal party in the country, the RND (National Democratic Group), the FFS (Socialist Forces Front), the RCD (Culture and Democracy Group), the MRN (National Reform Movement) which is an Islamic party and the PT (Workers' Party). A law prohibiting political parties based on religion was promulgated in March 1997.
Current Political Leaders
President : Abdelaziz Bouteflika (since April 1999, re-elected in April 2004 and April 2009) – Independent
Prime Minister: Ahmed OUYAHIA (since June 2008)
Next Election Dates
National Popular Assembly: May 2012
Presidential elections : April 2014
 

Indicator of Freedom of the Press

World Rank:
133/178
Evolution:
8 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012