Algeria Economic Outlook
May 10, 2022GDP remained below its pre-pandemic level at the end of 2021. Turning to H1 2022, the hydrocarbon sector—which constitutes around 95% of the country’s exports—is driving the ongoing recovery. Oil production was up 12.6% year on year in Q1 thanks to increased OPEC+ quotas. Gas exports to Europe surged by over 9% yoy in Q1, with a new deal with Italy the latest European move to diversify away from Russian energy. High energy prices are boosting the external and fiscal balances and encouraging new hydrocarbon investment, boding well for output ahead. This said, a lack of prior investment and the closure of a pipeline last year will cap output. Turning to the non-hydrocarbons sector, activity is likely more muted. The war in Ukraine and a drought have sent food prices spiraling. Recent VAT cuts and a new unemployment benefit will be likely unable to fully cushion the hit to private spending.
Algeria Economic GrowthThis month, our panel substantially upgraded its 2022 growth forecasts. Continued increases in OPEC+ quotas, European gas demand and new investment will boost the hydrocarbons sector. That said, growth will likely be one of the lowest in MENA. It will be at least several months before new investment boosts hydrocarbon output, while the non-hydrocarbons sector will drag on growth. FocusEconomics panelists foresee the economy growing 3.1% in 2022, which is up 0.5 percentage points from last month’s forecast, and 2.4% in 2023.
Algeria Economy Data
5 years of Algeria economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Exchange Rate||119.1||-0.11 %||Jan 01|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.