Algeria’s economy remains dominated by the state, a legacy of the country’s socialist postindependence development model. In recent years the Algerian Government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy.
Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world and is the sixth-largest gas exporter.
Strong revenues from hydrocarbon exports have brought Algeria relative macroeconomic stability, with foreign currency reserves approaching $200 billion and a large budget stabilization fund available for tapping. In addition, Algeria’s external debt is extremely low at about 2% of GDP. However, Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth.
GDP – realgrowth rate:
- 4% (2014 est.)
GDP – per capita (PPP):
- $14,300 (2014 est.)
- 9.7% (2014 est.)
Inflation rate (consumer prices):
- 2.5% (2014 est.)
Commercial bank prime lending rate:
- 8% (31 December 2014 est.)
Algerian dinars (DZD) per US dollar –
79.6 (Official) / ( xxxx black market)
(source: Economist Intelligence Unit)