Algeria’s economy grew by 2,2% percent in 2017. A decrease of 1,1% compared to previous year said the central bank in a document consulted by Reuters.
Algeria remains dependant on oil and gas revenues
The decline in the performance of the energy sector is responsible. This is the answer that can be given to the figures of the Algerian economy.
But there is also good news in this document. Indeed the central bank report that inflation last year stood at 5,6 % against 6,4% in 2016. Another good performance, the balance of payments deficit declined by $3 billion from $26,3 to $23,3 billion.Algeria, aiming to cut spending after a fall in energy earnings, last year tightened restrictions on imports, resulting in a $1 billion reduction in their total value.
But the country’s foreign exchange reserves declined by $16.8 billion to $97.3 billion in 2017, from $114.1 billion at the end of the previous year.
The North African country relies heavily on oil and gas, which account for 60% of the budget and 95% of total export revenue. State finances have been hit by a fall in crude oil prices since 2014. Even if the energy sector grew by 7.7% in 2016, its performance declined in 2017, the document said, without more details.
Algeria aims for overall growth of 4% this year and expects the energy sector to grow by 6.5%, as it sees some oil and gas fields coming online before the end of 2018.
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