Algeria Economic Outlook
February 5, 2019Despite a robust performance from the non-oil economy, growth slowed slightly from Q2’s already weak showing in Q3, as oil and gas production contracted at an even sharper pace than in the previous quarter and as service sector growth softened slightly. Nevertheless, higher oil prices in the quarter likely buttressed the government’s coffers in the period. Furthermore, the agricultural sector continued to post strong growth, while activity in the industrial and construction sectors accelerated. Looking at Q1, Sonatrach recently signed a USD 1.4 billion petrochemical joint-venture with Total, and a USD 445 million contract with China’s CHEC for an LNG terminal.
Algeria Economic GrowthSonatrach’s massive investment plan and a new energy law should drive growth this year by stimulating investment. However, a weak non-oil economy and high unemployment leave the country vulnerable to a prolonged downturn in oil prices. FocusEconomics panelists expect GDP to grow 2.4% in 2019, which is down 0.1 percentage points from last month’s forecast, and 2.0% in 2020.
Algeria Economy Data
5 years of Algeria economic forecasts for more than 30 economic indicators.
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|Exchange Rate||119.0||-0.11 %||Feb 14|
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