[Economics] Algeria The Monetary Fund: Algeria's economic prospects have improved,


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The International Monetary Fund said that the prospects for the Algerian economy have improved significantly in the near term, driven by the rise in oil and natural gas prices, at a time when inflation recorded its highest rate in 25 years.

This came in a report issued by the Fund late on Monday, following the conclusion of Article IV consultations with the Algerian authorities.

The statement stated that a mission from the International Monetary Fund visited Algiers between 6 and 21 November to conduct consultations with the Algerian authorities.

The mission indicated that the rise in fuel prices (oil and gas) helps to enhance the recovery of the Algerian economy after the shock of the Corona pandemic, and the exceptional revenues of fuel have led to easing pressures on the current account of the balance of payments and public finances.

She added that the current account balance is expected to record its first surplus since 2013 in 2022, at a time when international reserves rose to $53.5 billion at the end of September, compared to $46.7 billion in 2021.

The Algerian government is creating 4 free zones with Mauritania, Tunisia and Mali (Al Jazeera Net)

Algeria's exports from outside the hydrocarbon sector at the end of last September amounted to 5 billion dollars, and the authorities expect it to reach 7 billion by the end of the year, in an unprecedented historical figure since the country's independence from France in 1962.

The International Finance Corporation expected Algeria's economy to recover from the shock of the Covid-19 pandemic, with non-hydrocarbon GDP growth accelerating to 3.2% in 2022, compared to 2.1% in 2021.

The fund noted the acceleration of inflation in Algeria, as in many other countries, describing it as a "major concern", after it averaged about 9.4% on an annual basis in recent months, a level not recorded in 25 years.

The International Monetary Mission believes that the continued high dependence on hydrocarbon revenues and the large increase in public spending expected for 2023 lead to significant risks to public finances, amid volatile prices of raw materials.

Algeria's economy suffers from excessive dependence on hydrocarbon revenues, as they represent about 90% of the country's foreign exchange income.


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