Driven by oil and gas sales and by public spending, the Algerian economy has enjoyed several years of solid performance.
Algerian economy is characterized by:
- a gradual liberalization since mid-1990's (even though recent government actions imposed restrictions on foreign investments),
- a prudent fiscal and macroeconomic management,
- an oil-dependent economy: the hydrocarbon industry represents more than 97% of export revenues, between 50 and 60% of budget revenues and 30% of the Algerian GDP,
- an increasing non-hydrocarbon growth sustained by public spending,
- a low inflation,
- a State domination in most areas of the economy (telecommunications, banking industry...).
Positive financial and macroeconomic indicators:
- high GDP growth rate for more than a decade (around 4% on average between 2000 and 2009) with an increasing nonhydrocarbon growth (9.2% in 2009),
- Algerian's GDP is the highest in North Africa ($173.91 billion in 2010) and in the MENA area,
- Algeria's foreign exchange reserves are among the fifteen largest in the world (estimated at $155 billions in 2010),
- inflation does not exceed 4% in 2010,
- the country's foreign debt is very low (estimated at $5.6 in 2009); Algeria paid back most of its external debt to the IMF and the Paris and London clubs during the decade, thanks to the soaring oil cost,
- a positive trade balance since 2000 ($19.7 billion in 2010).
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