Algeria

Capital: Algiers

Local time:
It is %T:%M %A in Algiers

GDP growth rate: 3.4% in 2013

FDI stock: 19 498 million USD in 2010

Economic trends

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 2010-11, driven by the resumption of demand in the hydrocarbon sector and the strong performance of the service and construction sectors and aided by a program of public investment (PIP). Growth excluding the hydrocarbons sector reached 5% in 2011 and according to the estimates should remain at 4.7 in 2012.

Despite the outbreak of protests in early 2011, folloing other regional political upheavals, the impact of the Arab spring has been limited in Algeria. Social unrest had been fueled by the rising food prices, the housing crisis and unemployment - the government responded with a tax exemption on common food products, by increasing support for youth employment, and facilitating access to credit. The result was an explosion of public spending. The five-year plan 2010-2014 is in line with the previous emphasis on infrastructure modernization and privatization of the economy. The dependence of the Algerian economy on hydrocarbons is a potential barrier to the country's sustainable development.

The current unemployment rate in Algeria is officially at 10% but some claim it is closer to 20%. The per capita GDP was USD 5,245 in 2009. It should be noted that there is a large discrepancy between the urban and rural living conditions

Main branches 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.

International trade

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

Structurally in surplus, the Algerian trade balance grew positively in 2011 due to the exports benefiting from higher prices of petrol.

The main trade partners of Algeria are the European Union, the NAFTA countries (Free Trade Agreement between United States, Canada, and Mexico) and China. Algeria imports mainly equipment, food products and consumer goods; it exports almost exclusively oil, gaz and derivatives.