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The Economy of Algeria

Algerian Economy

Algeria's map

Economy - overview: The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter; it ranks 15th in oil reserves. Sustained high oil prices in recent years have helped improve Algeria's financial and macroeconomic indicators. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Algeria has decreased its external debt to less than 5% of GDP after repaying its Paris Club and London Club debt in 2006. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success in reducing high unemployment and improving living standards. Structural reform within the economy, such as development of the banking sector and the construction of infrastructure, moves ahead slowly hampered by corruption and bureaucratic resistance.

GDP:

GDP - real growth rate: 3% (2008 est.) 4.6% (2007 est.) 2.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 8.1% industry: 62.5% services: 29.4% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.8% highest 10%: 26.8% (1995)

Distribution of family income - Gini index: 35.3 (1995)

Inflation rate (consumer prices):

Labor force: 9.44 million (2008 est.)

Labor force - by occupation: agriculture 14%, industry 13.4%, construction and public works 10%, trade 14.6%, government 32%, other 16% (2003 est.)

Unemployment rate: 12.9% (2008 est.)

Budget: revenues: $73.26 billion expenditures: $51.19 billion (2008 est.)

Industries: petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing

Industrial production growth rate: 4.5% (2008 est.)

Electricity - production: 33.12 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 26.91 billion kWh (2006 est.)

Electricity - exports: 300 million kWh (2006 est.)

Electricity - imports: 382 million kWh (2006 est.)

Oil - production: 2.173 million bbl/day (2007 est.)

Oil - consumption: 279,800 bbl/day (2006 est.)

Oil - exports: 1.844 million bbl/day (2005 est.)

Oil - imports: 13,110 bbl/day (2005 est.)

Oil - proved reserves: 12.2 billion bbl (1 January 2008 est.)

Natural gas - production: 85.7 billion cu m (2007 est.)

Natural gas - consumption: 26.3 billion cu m (2007 est.)

Natural gas - exports: 59.4 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 4.502 trillion cu m (1 January 2008 est.)

Agriculture - products: wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle

Exports: $75.06 billion f.o.b. (2008 est.)

Exports - commodities: petroleum, natural gas, and petroleum products 97%

Exports - partners: US 29.4%, Italy 13.8%, Spain 9.6%, Canada 8.4%, France 7.4%, Netherlands 5% (2007)

Imports: $36.87 billion f.o.b. (2008 est.)

Imports - commodities: capital goods, foodstuffs, consumer goods

Imports - partners: France 18.7%, China 9%, Italy 8.5%, Spain 6%, US 5.5%, Germany 5.3%, Russia 4.6%, Turkey 4.1% (2007)

Debt - external: $2.913 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Algerian dinars (DZD) per US dollar - 63.25 (2008 est.), 69.9 (2007), 72.647 (2006), 73.276 (2005), 72.061 (2004)

Fiscal year: