Algerian Economy
Economy - overview: 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. It ranks 16th in oil reserves. 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. The government's efforts have done little to reduce high youth unemployment rates or to address housing shortages. A wave of economic protests in February and March 2011 prompted the Algerian Government to offer more than $23 billion in public grants and retroactive salary and benefit increases, moves which continue to weigh on public finances. Long-term economic challenges include diversifying the economy away from its reliance on hydrocarbon exports, bolstering the private sector, attracting foreign investment, and providing adequate jobs for younger Algerians.
GDP (purchasing power parity): $551.8 billion (2014 est.)
GDP (official exchange rate): $214.1 billion (2014 est.)
GDP - real growth rate: 4.1% (2014 est.)
GDP - per capita (PPP): $14,300 (2014 est.)
GDP - composition by sector: agriculture: 8.6%
industry: 48.3%
services: 43.1% (2014 est.)
Labor force: 12.19 million (2014 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: 10.6% (2014 est.)
9.8% (2013 est.)
Household income or consumption by percentage share: lowest 10%: 2.8%
highest 10%: 26.8% (1995)
Investment (gross fixed): 26.8% of GDP (2009 est.)
Budget: revenues: $79.53 billion
expenditures: $89.21 billion (2014 est.)
Public debt: 7.5% of GDP (2014 est.)
Inflation rate (consumer prices): 2.9% (2014 est.)
Central bank discount rate: 4% (31 December 2010)
Commercial bank prime lending rate: 8% (31 December 2014 est.)
Agriculture - products: wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle
Industries: petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
Industrial production growth rate: 2.8% (2014 est.)
Electricity - production: 48.05 billion kWh (2011 est.)
Electricity - consumption: 44 billion kWh (2012 est.)
Electricity - exports: 985 million kWh (2012 est.)
Electricity - imports: 936 million kWh (2012 est.)
Oil - production: 1.762 million bbl/day (2013 est.)
Oil - consumption: 299,000 bbl/day (2008 est.)
Oil - exports: 1.097 million bbl/day (2010 est.)
Oil - imports: 6,400 bbl/day (2010 est.)
Oil - proved reserves: 12.2 billion bbl (1 January 2014 est.)
Natural gas - production: 78.6 billion cu m (2013 est.)
Natural gas - consumption: 32.3 billion cu m (2013 est.)
Natural gas - exports: 49 billion cu m (2012 est.)
Natural gas - imports: 0 cu m (2012 est.)
Natural gas - proved reserves: 4.505 trillion cu m (1 January 2014 est.)
Current account balance: -$9.289 billion (2014 est.)
Exports: $62.1 billion (2014 est.)
Exports - commodities: petroleum, natural gas, and petroleum products 97% (2009 est.)
Exports - partners: Egypt 17%, Iran 13.3%, US 10.8%, NZ 7.8%, Republic of the Congo 7.5%, UAE 7.1%, Benin 4.9%, Thailand 4.1% (2014)
Imports: $55.36 billion (2014 est.)
Imports - commodities: capital goods, foodstuffs, consumer goods
Imports - partners: China 14.1%, France 10.8%, Italy 8.6%, Spain 8.6%, Germany 6.5%, US 4.9% (2014)
Reserves of foreign exchange and gold: $193.6 billion (31 December 2014 est.)
Debt - external: $4.872 billion (31 December 2014 est.)
Stock of direct foreign investment - at home: $27.1 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad: $1.955 billion (31 December 2014 est.)
Exchange rates: Algerian dinars (DZD) per US dollar - 79.6 (2014 est.), 79.368 (2013 est.), 77.54 (2012 est.), 72.938 (2011 est.), 74.386 (2010 est.)
economic climate  
Background: The current president is committed to further market reforms including privatising telecommunications and bringing investors into fixed-line and mobile phone operation systems, and allowing private investors to take up minority shares in state-owned companies and finance sectors.
Hydrocarbons are the backbone of the Algerian economy, accounting for roughly 52 per cent of budget revenues, 25 per cent of GDP, and over 95 per cent of export earnings. Algeria has the fifth largest reserves of natural gas in the world and is the second largest gas exporter; it ranks 14th for oil reserves.
Export opportunities:  
Update: This page was last updated on 10 November 2015
Sources: CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html
http://www.austrade.gov.au
DIBNC Experts Team