Algeria Anticipated to Experience Economic Revival by World Bank

The World Bank report expects economic activity in Algeria to accelerate outside the hydrocarbon sector, given that private investment and economic diversification are needed to achieve long-term growth.

The spring report, released by the World Bank on June 22, 2023, showed expectations of an acceleration in economic activity and an improvement in the macroeconomic balance.

In its report, the Bank believes that private investment and economic diversification are needed to achieve long-term growth.

As Cyril Dupont, World Bank Economist in charge of Algeria, said: “The dynamism of the country’s economic activity is clear, despite the impact of lower oil production and lack of rain in the agricultural sector on growth prospects for 2023. the continued rise in gas export prices supports more expectations.” Optimistic about the trade balance, foreign exchange reserves, budget deficit and public debt.

The World Bank said that “the Algerian economy will record continuous growth in 2022, an acceleration in the economic activity of industries other than the hydrocarbon sector in the same year, in addition to the recovery of agricultural production and the continuous growth of private consumption. .”

He also clarified that the indicators point to continued growth across the regions of the country in the first quarter of 2023.

The report highlights Algeria’s GDP growth reaching 3.2% in 2022, while sectors other than hydrocarbons achieved rapid growth of 4.3%, up from 2.3% in 2021.

According to the report, “the current account surplus was 9.5% of GDP in 2022, bringing foreign exchange reserves to $61.7 billion at the end of 2022, equivalent to 15.8 months of imports.”

The World Bank also added that “Inflation levels in Algeria remained high due to rising prices for fresh food, prompting the authorities to revise the exchange rate and monetary policy to mitigate inflation, as well as increase government spending to support the purchasing power of the family.”

“Despite recent positive developments at the macro level, Algeria’s economic outlook continues to be affected by fluctuations in oil prices, highlighting the importance of continuing reforms to enable the private sector to become an engine for sustainable growth and economic diversification,” Kamal said. Brahem, World Bank Representative in Algeria.

Source: Al-Shoruk, Algeria.