Economy Overview
Algeria's economy remains dominated by the state, a legacy of the country's socialist postindependence 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 on hydrocarbon exports, bolstering the private sector, attracting foreign investment, 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
2.8% (2014 est.)
Labor Force
12.19 million (2014 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
9.8% (2013 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)
Budget
Revenues: $79.53 billion
Expenditures: $89.21 billion (2014 est.)
Public Debt
7.1% of GDP (2013 est.)
Central Bank Discount Rate
4% (31 December 2009)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$105.6 billion (31 December 2013 est.)
Stock of Broad Money
$152.8 billion (31 December 2013 est.)
Stock of Domestic Credit
$6.398 billion (31 December 2013 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$195 billion (31 December 2013 est.)
Debt External
$5.285 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
$24.97 billion (31 December 2013 est.)
Stock of Direct Foreign Investment Abroad
$1.865 billion (31 December 2013 est.)
Exchange Rates
74.386 (2010 est.)
