Data sheet Politics and Economy

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.

Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings.

Algeria has the 10th-largest reserves of natural gas in the world and is the sixth-largest gas exporter. It ranks 16th in oil reserves. Strong revenues from hydrocarbon exports have brought Algeria relative macroeconomic stability, with foreign currency reserves approaching $200 billion and a large budget stabilization fund available for tapping. In addition, Algeria’s external debt is extremely low at about 2% of GDP. However, Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth.

The government’s efforts have done little to reduce high youth unemployment rates or to address housing shortages. A wave of economic protests in February and March 2011 prompted the Algerian Government to offer more than $23 billion in public grants and retroactive salary and benefit increases, moves which continue to weigh on public finances.

Long-term economic challenges include diversifying the economy away from its reliance

  1. on hydrocarbon exports,
  2. bolstering the private sector,
  3. attracting foreign investment, and
  4. providing adequate jobs for younger Algerians.

GDP (purchasing power parity)  $277.4 billion (2012 est.), $270.5 billion (2011 est.), $264.2 billion (2010 est.)

GDP (official exchange rate) $207.8 billion (2012 est.)

GDP – real growth rate 2.5% (2012 est.), 2.4% (2011 est.), 3.6% (2010 est.)

GDP – per capita (PPP) $7,600 (2012 est.). $7,500 (2011 est.), $7,500 (2010 est.)

Gross national saving 41.1% of GDP (2012 est.), 45.1% of GDP (2011 est.), 48.1% of GDP (2010 est.)

GDP – composition, by end use household consumption: 30.2%

government consumption: 27%

investment in fixed capital: 31.5%

investment in inventories: 3.5%

exports of goods and services: 36.5%

imports of goods and services: -28.6%

(2012 est.)

GDP – composition by sector agriculture: 8.9%

industry: 60.9%

services: 30.2% (2012 est.)

Population below poverty line 23% (2006 est.)

Labor force 11.31 million (2012 est.)

Labor force – by occupation agriculture: 14%

industry: 13.4%

construction and public works: 10%

trade: 14.6%

government: 32%

other: 16% (2003 est.)

Unemployment rate 10.2% (2012 est.)

10% (2011 est.)

Unemployment, youth ages 15-24 total: 21.5%

male: 18.7%

female: 37.5% (2010)

Household income or consumption by percentage share lowest 10%: 2.8%

highest 10%: 26.8% (1995)

Distribution of family income – Gini index 35.3 (1995)

Investment (gross fixed) 31.5% of GDP (2012 est.)

Budget revenues: $81.23 billion

expenditures: $84.82 billion (2012 est.)

Taxes and other revenues 39.1% of GDP (2012 est.)

Budget surplus (+) or deficit (-) -1.7% of GDP (2012 est.)

Public debt 7.9% of GDP (2012 est.), 8.4% of GDP (2011 est.)

note: data cover central government debt; the data include debt issued by subnational entities, as well as intra-governmental debt

Inflation rate (consumer prices) 8.9% (2012 est.), 4.5% (2011 est.)

Central bank discount rate 4% (31 December 2010 est.), 4% (31 December 2009 est.)

Commercial bank prime lending rate 8% (31 December 2012 est.), 8% (31 December 2011 est.)

Stock of narrow money $98.36 billion (31 December 2012 est.), $93.9 billion (31 December 2011 est.)

Stock of broad money $150 billion (31 December 2012 est.), $130.6 billion (31 December 2011 est.)

Stock of domestic credit $4.031 billion (31 December 2012 est.), $8.659 billion (31 December 2011 est.)

Market value of publicly traded shares $NA

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 1.5% (2012 est.)

Current Account Balance $19.95 billion (2012 est.), $19.7 billion (2011 est.)

Exports $71.81 billion (2012 est.), $72.88 billion (2011 est.)

Exports – commodities petroleum, natural gas, and petroleum products 97%

Exports – partners US 16.1%, Spain 13.9%, Canada 10.4%, Netherlands 8.4%, France 8%, Brazil 5.6%, UK 5.1% (2012)

Imports $48.27 billion (2012 est.), $44.89 billion (2011 est.)

Imports – commodities capital goods, foodstuffs, consumer goods

Imports – partners France 17.2%, China 11.5%, Spain 9.4%, Italy 9.1%, Germany 4.6% (2012)

Reserves of foreign exchange and gold $191.6 billion (31 December 2012 est.), $183.1 billion (31 December 2011 est.)

Debt – external $5.942 billion (31 December 2012 est.), $6.072 billion (31 December 2011 est.)

Stock of direct foreign investment – at home $23.78 billion (31 December 2012 est.). $21.78 billion (31 December 2011 est.)

Stock of direct foreign investment – abroad $2.474 billion (31 December 2012 est.),$2.174 billion (31 December 2011 est.)

Exchange rates Algerian dinars (DZD) per US dollar – 77.536 (2012 est.)

72.938 (2011 est.)

74.386 (2010 est.)

72.65 (2009)

63.25 (2008)

Fiscal year calendar year

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