Algeria: 2006 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Algeria
IMF Staff Country Reports, February 22, 2007
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- Algeria: 2006 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Algeria
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Bibliographic details
- Published: February 22, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451811537.002
Summary findings
- Algeria’s key challenges: achieve sustained growth and reduce unemployment, while maintaining macroeconomic stability.
- Real GDP growth temporarily declined to about 3 percent in 2006, largely because of a drop in hydrocarbon output for technical reasons.
- Inflation remained low through mid-year but is picking up.
- Monetary policy remained prudent, in line with the authorities’ objective of containing inflation.
- The Bank of Algeria continued to absorb most of the excess liquidity of the banking system through deposit auctions in 2006.
Macroeconomic developments
- Real GDP growth: about 3 percent in 2006 (temporary decline).
- Hydrocarbon sector: drop in hydrocarbon output for technical reasons identified as a key factor in the growth slowdown.
- Inflation: low through mid-year 2006, with evidence of picking up thereafter.
Monetary and financial sector policy
- Monetary stance: described as prudent and aligned with the objective of containing inflation.
- Liquidity management: the Bank of Algeria absorbed most excess banking system liquidity via deposit auctions in 2006.
Thematic coverage and policy context
- Subjects covered in the report include: Credit, Expenditure, External debt, Financial institutions, Money, Public debt, Public investment spending, State-owned banks.
- Keywords and focus areas: Algerian authorities; authorities' reform priority; CR; Credit; government; government service; high-quality fund policy dialogue; ISCR; Maghreb; monetary policy; policy; Public investment spending; reform priority; stabilization fund; staff note; State-owned banks; world oil price.
Algeria: 2006 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Algeria. February 22, 2007; IMF Staff Country Reports 2007, 072 (2007), DOI: https://doi.org/10.5089/9781451811537.002
Content in this bundle
- Algeria: Medium-Term Projections and Policy Discussions
- _cr0772f