Algeria Economic Outlook
February 6, 2018Economic growth in the third quarter was a bleak 1.4% year-on-year, held back by a significant contraction in the hydrocarbon sector. An otherwise broad-based improvement across sectors was unable to lift the economy; growth has been lackluster since the second quarter, when the hydrocarbon sector first slipped into decline. Despite last year’s notable improvement in oil prices, the sector was unable to reap the benefits, given its severe and growing capacity constraints resulting from a lack of investment. Moreover, recent survey data for the third quarter suggested that industrial output was underwhelming, pointing to the need for a more rapid implementation of the government’s long-promised liberalizing reforms.
Algeria Economic GrowthThe economy is not expected to fully recover this year, as residual austerity measures continue weighing on household spending and outdated infrastructure again constrains hydrocarbon output. That said, expansionary fiscal policy and upbeat exports should provide some lift. FocusEconomics panelists expect GDP to grow 2.2% in 2018, down 0.1 percentage points from last month’s forecast, and 2.4% in 2019.
Algeria Economy Data
5 years of Algeria economic forecasts for more than 30 economic indicators.
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|Exchange Rate||114.4||-0.11 %||Feb 21|
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