Economy Overview
Algeria's economy remains dominated by the state, a legacy of the country's socialist post-independence development model. Gradual liberalization since the mid-1990s has opened up more of the economy, but in recent years Algeria has imposed new restrictions on foreign involvement in its economy and largely halted the privatization of state-owned industries. 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 eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter. It ranks 16th in oil reserves. Thanks to strong hydrocarbon revenues, Algeria has a cushion of $150 billion in foreign currency reserves and a large hydrocarbon stabilization fund. In addition, Algeria's external debt is extremely low at about 1% of GDP. Algeria has struggled to develop industries outside of hydrocarbons in part because of high costs and an inert state bureaucracy. The government's efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector have done little to reduce high poverty and youth unemployment rates. In 2010, Algeria began a five-year, $286 billion development program to update the country's infrastructure and provide jobs. The costly program will boost Algeria's economy in 2011 but worsen the country's budget deficit. Long-term economic challenges include diversification from hydrocarbons, relaxing state control of the economy, and providing adequate jobs for younger Algerians.
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
-3.6% (2010 est.)country comparison to the world: 160
Labor Force
10.81 million (2010 est.)country comparison to the world: 47
Electricity production
40.11 billion kWh (2009 est.)country comparison to the world: 54
Electricity Consumption
30.5 billion kWh (2008 est.)country comparison to the world: 60
Electricity Exports
323 million kWh (2008 est.)
Electricity Imports
49 million kWh (2008 est.)
Unemployment Rate
10% (2010 est.)country comparison to the world: 109 10.2% (2009 est.)
Population Below Poverty Line
23% (2006 est.)
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)country comparison to the world: 90
Budget
Revenues: $58.88 billion
Expenditures: $60.67 billion (2010 est.)
Public Debt
6.6% of GDP (2010 est.)country comparison to the world: 128 8.1% of GDP (2009 est.)
Central Bank Discount Rate
4% (31 December 2010 est.)country comparison to the world: 93 4% (31 December 2009 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$75.24 billion (31 December 2010 est.)country comparison to the world: 36 $67.98 billion (31 December 2009 est.)
Stock of Broad Money
$108.9 billion (31 December 2010 est.)country comparison to the world: 49 $98.63 billion (31 December 2009 est.)
Stock of Domestic Credit
$12.18 billion (31 December 2010 est.)country comparison to the world: 91 $12.27 billion (31 December 2009 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$162.9 billion (31 December 2010 est.)country comparison to the world: 15 $149.3 billion (31 December 2009 est.)
Debt External
$4.344 billion (31 December 2010 est.)country comparison to the world: 119 $5.345 billion (31 December 2009 est.)
Stock of Direct Foreign Investment at Home
$21.03 billion (31 December 2010 est.)country comparison to the world: 67 $17.34 billion (31 December 2009 est.)
Stock of Direct Foreign Investment Abroad
$1.844 billion (31 December 2010 est.)country comparison to the world: 69 $1.644 billion (31 December 2009 est.)
Exchange Rates
Algerian dinars (DZD) per US dollar -76 (2010)72.65 (2009)63.25 (2008)69.9 (2007)72.647 (2006)
