Algeria

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Algeria - In Short.

Overview of Algeria

Algeria has known many empires and dynasties starting with the ancient Numidians (3rd century B.C.), Phoenicians, Carthaginians, Romans, Vandals, Byzantines, over a dozen different Arab and Berber dynasties, Spaniards, and Ottoman Turks. It was under the latter that the Barbary pirates operated from North Africa and preyed on shipping beginning in roughly 1500, peaking in the early to mid-17th century, until finally subdued by the French capture of Algiers in 1830. The French southward conquest of the entirety of Algeria proceeded throughout the 19th century and was marked by many atrocities. The country was heavily colonized by the French in the late 19th and early 20th centuries. A bloody eight-year struggle culminated in Algerian independence in 1962. Algeria’s primary political party, the National Liberation Front (FLN), was established in 1954 as part of the struggle for independence and has since largely dominated politics. The Government of Algeria in 1988 instituted a multi-party system in response to public unrest, but the surprising first round success of the Islamic Salvation Front (FIS) in the December 1991 legislative elections led the Algerian army to intervene and postpone the second round of elections to prevent what the secular elite feared would be an extremist-led government from assuming power. The army began a crackdown on the FIS that spurred FIS supporters to begin attacking government targets. Fighting escalated into an insurgency, which saw intense violence from 1992-98, resulting in over 100,000 deaths – many attributed to indiscriminate massacres of villagers by extremists. The government gained the upper hand by the late-1990s, and FIS’s armed wing, the Islamic Salvation Army, disbanded in January 2000. Abdelaziz BOUTEFLIKA, with the backing of the military, won the presidency in 1999 in an election that was boycotted by several candidates protesting alleged fraud, and won subsequent elections in 2004, 2009, and 2014. The government in 2011 introduced some political reforms in response to the Arab Spring, including lifting the 19-year-old state of emergency restrictions and increasing women’s quotas for elected assemblies, while also increasing subsidies to the populace. Since 2014, Algeria’s reliance on hydrocarbon revenues to fund the government and finance the large subsidies for the population has fallen under stress because of declining oil prices. Protests broke out across the country in late February 2019 against President BOUTEFLIKA’s decision to seek a fifth term. BOUTEFLIKA resigned on 2 April 2019, and the speaker of the upper house of parliament, Abdelkader BENSALAH, became interim head of state on 9 April. BENSALAH remained in office beyond the 90-day constitutional limit until Algerians elected former Prime Minister Abdelmadjid TEBBOUNE as the country’s new president in December 2019.
Value
Country Full Name
Algeria
Country Code
DZA
Region
Middle East & North Africa
Income Group
Lower middle income
Currency Unit
GDP
1.45E+11
Population
43851043
Land Area
2381741
Net National Income Per Capita
2736.448036
GDP per Capita (PPP)
11324.23581

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Algeria - Economic

Economy of Algeria

Algeria’s economy remains dominated by the state, a legacy of the country’s socialist post-independence 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, pursuing an explicit import substitution policy.Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of GDP, 60% of budget revenues, and nearly 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world – including the 3rd-largest reserves of shale gas – and is the 6th-largest gas exporter. It ranks 16th in proven oil reserves. Hydrocarbon exports enabled Algeria to maintain macroeconomic stability, amass large foreign currency reserves, and maintain low external debt while global oil prices were high. With lower oil prices since 2014, Algeria’s foreign exchange reserves have declined by more than half and its oil stabilization fund has decreased from about $20 billion at the end of 2013 to about $7 billion in 2017, which is the statutory minimum.Declining oil prices have also reduced the government’s ability to use state-driven growth to distribute rents and fund generous public subsidies, and the government has been under pressure to reduce spending. Over the past three years, the government has enacted incremental increases in some taxes, resulting in modest increases in prices for gasoline, cigarettes, alcohol, and certain imported goods, but it has refrained from reducing subsidies, particularly for education, healthcare, and housing programs.Algiers has increased protectionist measures since 2015 to limit its import bill and encourage domestic production of non-oil and gas industries. Since 2015, the government has imposed additional restrictions on access to foreign exchange for imports, and import quotas for specific products, such as cars. In January 2018 the government imposed an indefinite suspension on the importation of roughly 850 products, subject to periodic review.President BOUTEFLIKA announced in fall 2017 that Algeria intends to develop its non-conventional energy resources. Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth. Algeria has not increased non-hydrocarbon exports, and hydrocarbon exports have declined because of field depletion and increased domestic demand.

Unemployment Rate

Inflation Rate

Algeria - GDP Composition

GDP Composiiton & Value Added of Algeria

Last Updated: Jan, 2021, Updated For 2020.

Algeria - GDP, Value Added

Demographics of Algeria

the vast majority of the populace is found in the extreme northern part of the country along the Mediterranean Coast as shown in this population distribution map
Geographic Location

Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia

Races

Arab-Berber 99%, European less than 1%note: although almost all Algerians are Berber in origin (not Arab), only a minority identify themselves as primarily Berber, about 15% of the total population; these people live mostly in the mountainous region of Kabylie east of Algiers and several other communities; the Berbers are also Muslim but identify with their Berber rather than Arab cultural heritage; Berbers have long agitated, sometimes violently, for autonomy; the government is unlikely to grant autonomy but has officially recognized Berber languages and introduced them into public schools

Languages

Arabic (official), French (lingua franca), Berber or Tamazight (official); dialects include Kabyle Berber (Taqbaylit), Shawiya Berber (Tacawit), Mzab Berber, Tuareg Berber (Tamahaq)major-language

Religion

Muslim (official; predominantly Sunni) 99%, other (includes Christian, Jewish, Ahmadi  Muslims, Shia Muslims, Ibadi  Muslims) <1% (2012 est.)

Dependency & Expectancy of Algeria

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Algeria - Social Media Briefing

Algeria - Social Media & Social Commerce

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Politics & Policies of Algeria

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ABEDA, AfDB, AFESD, AMF, AMU, AU, BIS, CAEU, CD, FAO, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), LAS, MIGA, MONUSCO, NAM, OAPEC, OAS (observer), OIC, OPCW, OPEC, OSCE (partner), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)

Import of Algeria

Export of Algeria

Import Destination

Export Destination