Algeria Economic Outlook
January 8, 2019After a weak showing in H1, growth likely improved in H2 2018 amid a ramp-up of fiscal spending and investment from state oil firm Sonatrach. While tumbling oil prices in Q4 likely dented economic momentum, the annual trade deficit more than halved as of November, though foreign reserves kept falling. Further Sonatrach investments should drive momentum going forward. In recent weeks, the company signed contracts for over USD 1 billion of natural gas projects, adding to the USD 6 billion phosphate plant deal signed on 26 November in a joint-venture with a Chinese firm.
Algeria Economic GrowthThe new energy law expected in H1 2019 should drive economic growth this year by attracting FDI inflows, synergizing with Sonatrach’s massive investment plan. Nevertheless, the country remains plagued by a weak fiscal position, high youth unemployment and a lack of economic reforms, while a sustained lull in oil prices is a major downside risk to the outlook. Met the why particular panelists expect GDP to grow 2.5% in 2019, which is down 0.1 percentage points from last month’s forecast, and 2.2% in 2020.
Algeria Economy Data
5 years of Algeria economic forecasts for more than 30 economic indicators.
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|Exchange Rate||118.4||-0.11 %||Jan 30|
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