Algeria Economic Outlook
July 31, 2018The economy accelerated in Q1 after a solid performance of the agricultural and industrial sectors. Meanwhile, renewed efforts by state-owned Sonatrach to woo foreign investors should have reinforced oil-sector momentum in Q2, ahead of the scheduled start of operations at the Touat gas field in H2. The trade deficit was halved from last year in H1 on higher oil prices, but foreign reserves still declined to USD 90bn by the end of May as the import bill remained large. Sonatrach has been in talks with major oil companies to start a trading joint-venture—a deal could reasonably be expected by the end of August—and signed an agreement on 19 July with Italy’s ENI to create a gas hub in the Berkine basin. It also expects to reach a deal with ExxonMobil by year-end to exploit shale oil.
Algeria Economic GrowthGrowth should increase this year on higher oil prices and output, aided by fiscal support. An expected new energy law in 2019 should also reinforce medium-term growth, but current monetary financing risks fanning imbalances and inflation. Met the why particular panelists expect GDP to grow 2.7% in 2018, unchanged from last month’s forecast, and 2.5% in 2019.
Algeria Economy Data
5 years of Algeria economic forecasts for more than 30 economic indicators.
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|Exchange Rate||119.2||-0.11 %||Aug 15|
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