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, pursuing an explicit import substitution policy.; Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of GDP, 60% of budget revenues, and nearly 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world - including the 3rd-largest reserves of shale gas - and is the 6th-largest gas exporter. It ranks 16th in proven oil reserves. Hydrocarbon exports enabled Algeria to maintain macroeconomic stability, amass large foreign currency reserves, and maintain low external debt while global oil prices were high. With lower oil prices since 2014, Algeria’s foreign exchange reserves have declined by more than half and its oil stabilization fund has decreased from about $20 billion at the end of 2013 to about $7 billion in 2017, which is the statutory minimum.; Declining oil prices have also reduced the government’s ability to use state-driven growth to distribute rents and fund generous public subsidies, and the government has been under pressure to reduce spending. Over the past three years, the government has enacted incremental increases in some taxes, resulting in modest increases in prices for gasoline, cigarettes, alcohol, and certain imported goods, but it has refrained from reducing subsidies, particularly for education, healthcare, and housing programs.; Algiers has increased protectionist measures since 2015 to limit its import bill and encourage domestic production of non-oil and gas industries. Since 2015, the government has imposed additional restrictions on access to foreign exchange for imports, and import quotas for specific products, such as cars. In January 2018 the government imposed an indefinite suspension on the importation of roughly 850 products, subject to periodic review.; President BOUTEFLIKA announced in fall 2017 that Algeria intends to develop its non-conventional energy resources. Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth. Algeria has not increased non-hydrocarbon exports, and hydrocarbon exports have declined because of field depletion and increased domestic demand.;
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
0.6% (2017 est.); country comparison to the world: 164;
Labor Force
11.82 million (2017 est.); country comparison to the world: 50;
Unemployment Rate
11.7% (2017 est.); 10.5% (2016 est.); country comparison to the world: 155;
Population Below Poverty Line
23% (2006 est.);
Household Income or Consumption by Percentage Share
Lowest 10%: 26.8% (1995)
Highest 10%: 26.8% (1995)
Distribution of Family Income Gini Index
35.3 (1995); country comparison to the world: 95;
Budget
Revenues: 54.15 billion (2017 est.)
Expenditures: 70.2 billion (2017 est.)
Public Debt
27.5% of GDP (2017 est.); 20.4% of GDP (2016 est.); note: data cover central government debt as well as debt issued by subnational entities and intra-governmental debt; country comparison to the world: 170;
Central Bank Discount Rate
4% (31 December 2010); 4% (31 December 2009); country comparison to the world: 99;
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$84.56 billion (31 December 2017 est.); $85.21 billion (31 December 2016 est.); country comparison to the world: 44;
Stock of Broad Money
$84.56 billion (31 December 2017 est.); $85.21 billion (31 December 2016 est.); country comparison to the world: 44;
Stock of Domestic Credit
$110.2 billion (31 December 2017 est.); $86.63 billion (31 December 2016 est.); country comparison to the world: 54;
Market Value of Publicly Traded Shares
NA;
Reserves of Foreign Exchange and Gold
$97.89 billion (31 December 2017 est.); $114.7 billion (31 December 2016 est.); country comparison to the world: 26;
Debt External
$6.26 billion (31 December 2017 est.); $5.088 billion (31 December 2016 est.); country comparison to the world: 128;
Stock of Direct Foreign Investment at Home
$29.05 billion (31 December 2017 est.); $25.74 billion (31 December 2016 est.); country comparison to the world: 72;
Stock of Direct Foreign Investment Abroad
$1.893 billion (31 December 2017 est.); $2.025 billion (31 December 2016 est.); country comparison to the world: 85;
Exchange Rates
Algerian dinars (DZD) per US dollar -; 108.9 (2017 est.); 109.443 (2016 est.); 109.443 (2015 est.); 100.691 (2014 est.); 80.579 (2013 est.);
