Algeria

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Growth in Algeria has slowed down, in the face of the global economic crisis. In effect, despite the Algerian government's efforts to diversify the national economy, to a great extent it remains annuitant, based on the use and sale of its hydrocarbons. Meanwhile, the oil and gas prices have collapsed following the financial crisis and consequently Algerian exports have decreased significantly in value.

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. The first being that at the time when this program was undertaken, 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 current unemployment rate in Algeria is officially at 8% but some maintain that it is closer to 20%. The GDP/ inhabitant 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	2006	2007	2008	2009	2010
GDP (billions USD)	116.83	135.34e	159.67e	128.59	145.72e
GDP (constant prices, annual % change)	2.0	3.0e	3.0e	2.1	3.9e
GDP per capita (USD)	3,456	3,934	4,588	3,640	4,064
Inflation rate (%)	2.5	3.6e	4.5	4.6	3.4e
Unemployment rate (% of the labor force)	-	-	12.9	-	-
Current Account (billions USD)	28.95	30.60	37.08e	-2.17	2.09
Current Account (in % of GDP)	24.8	22.6	23.2e	-1.7e	1.4e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

Agriculture contributes about 8% of the GDP and employs almost 25% 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 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 is ranked 14th for its petroleum reserves and 7th 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.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	21.1	24.0	54.8
Value added (in % of GDP)	8.2	61.1	30.7
Value added (annual % change)	5.9	1.7	7.7

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Algerian Dinar (DZD) - Average annual exchange rate for 1 USD	72.06	73.28	72.65	69.29	64.58

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 56.6/100
Position:: mostly unfree
World Rank:: 107 out of 179
Regional Rank:: 14 out of 18

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Algerian exports have grown by 223%, between 2002 and 2008. This godsend is mainly due to hydrocarbon exports, which represent nearly 98% of the total exports and to the explosion of world prices. The logical consequence, given the opening up of the Algerian economy, is the parallel growth of imports (+133%). During this period, the trade balance has generated a significant surplus and Algeria now has foreign currency reserves of nearly USD 100 Billion. Unfortunately, the drop in global oil prices and the sustained levels of imports have threatened the Algerian trade balance in 2009.
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	2003	2004	2005	2006	2007
Imports of goods and services (annual % change)	2.4	13.1	9.5	-1.8	7.6
Exports of goods and services (annual % change)	7.2	4.1	6.1	-2.4	-0.6
Imports of goods and services (in % of GDP)	23.9	25.7	24.3	21.6	23.4
Exports of goods and services (in % of GDP)	38.3	40.1	47.6	48.9	46.8
Foreign trade (in % of GDP)	62.1	65.7	71.9	70.6	70.2

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
United States	30.1%
Italy	13.2%
Spain	8.9%
Canada	7.8%
Netherlands	7.5%
France	6.8%
Turkey	3.4%
Brazil	3.0%
United Kingdom	2.6%
India	2.6%
Belgium	2.0%
China	1.8%
Portugal	1.6%
South Korea	1.3%
Niger	1.1%
Morocco	1.0%
Egypt	0.7%
Bahamas	0.6%
Cuba	0.4%
Japan	0.4%
See more countries	32.5%

Main suppliers (% of imports)	2007
France	16.7%
Italy	8.7%
China	8.6%
United States	7.7%
Germany	6.5%
Spain	5.7%
Japan	3.9%
Argentina	3.3%
Turkey	3.3%
South Korea	2.9%
Belgium	2.6%
Brazil	2.2%
United Kingdom	2.0%
Canada	1.8%
Ukraine	1.7%
India	1.6%
Sweden	1.3%
Austria	1.3%
Switzerland	1.3%
Netherlands	1.2%
See more countries	51.7%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	98.4%
Iron and steelIron and steel	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Copper and articles thereofCopper and articles thereof	0.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
See more products	0.6%

Main imports (% of imports)	2007
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	16.3%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	12.9%
Articles of iron or steelArticles of iron or steel	8.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	7.7%
CerealsCereals	7.1%
Iron and steelIron and steel	6.0%
Pharmaceutical productsPharmaceutical products	5.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	3.9%
Plastics and articles thereofPlastics and articles thereof	3.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	2.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.6%
Sugars and sugar confectionerySugars and sugar confectionery	1.6%
Miscellaneous chemical productsMiscellaneous chemical products	1.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	1.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.9%
Rubber and articles thereofRubber and articles thereof	0.9%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.9%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.8%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.8%
Aluminium and articles thereofAluminium and articles thereof	0.8%
Copper and articles thereofCopper and articles thereof	0.7%
Organic chemicalsOrganic chemicals	0.7%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Meat and edible meat offalMeat and edible meat offal	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.5%
Ships, boats and floating structuresShips, boats and floating structures	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.4%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.4%
Ceramic productsCeramic products	0.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Glass and glasswareGlass and glassware	0.4%
Ores, slag and ashOres, slag and ash	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Man-made filamentsMan-made filaments	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
FertilizersFertilizers	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
See more products	47.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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