Algeria Economic Outlook
November 28, 2017Industrial data for Q2 corroborated the recent softening of the economy; annual GDP growth fell to a multi-year low in the second quarter on lower oil and gas output. By sector, industrial output from the hydrocarbon and extractive sectors slumped, likely due to constrained capacity from weak investment in the country’s older oil and gas fields. Moreover, output in the manufacturing sector declined sharply. Meanwhile, both agroindustrial output and the recovery of the agricultural sector moderated in the quarter. More broadly, the non-hydrocarbon economy appears to be struggling, with growth in related industries falling by nearly two thirds in H1 from a year ago, while related services also slowed in the quarter as strict austerity measures began to bite.
Algeria Economic GrowthTepid growth is expected to persist next year as a weak non-hydrocarbon economy and residual austerity measures constrain household spending. Upside prospects include much-needed investment in oil and gas infrastructure upgrades, which could alleviate capacity concerns over the medium term. FocusEconomics panelists expect GDP to grow 2.3% in 2018, down 0.1 percentage points from last month’s forecast, and again in 2019.
Algeria Economy Data
5 years of Algeria economic forecasts for more than 30 economic indicators.
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|Exchange Rate||115.1||-0.11 %||Dec 06|
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