Algeria: 2007 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, March 17, 2008
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- Algeria: 2007 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: March 17, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451811568.002
Overview and Main Findings
- Algeria’s external position has strengthened.
- Algeria’s encouraging economic performances in recent years reflect market-oriented reforms and prudent macroeconomic policies in a favorable external environment.
- Main challenges:
- Ensure sustained high productivity and nonhydrocarbon growth.
- Lower further the still-high unemployment.
Policy Responses and Recommendations
- Executive Directors welcomed the recent increase in the reserve requirement rate.
- Fiscal and revenue policy recommendations:
- Gradual steps to reduce exemptions.
- Improve VAT design.
- Eliminate the turnover tax.
- These reforms are assessed as contributing importantly to improving the business climate.
Subject Areas and Keywords (as listed)
- Subject: Corporate bonds, Credit, Financial institutions, Fiscal policy, Fiscal stance, Foreign exchange, Money, Public investment and public-private partnerships (PPP), Real effective exchange rates, State-owned banks
- Keywords: Algeria, bank financing, Corporate bonds, CR, Credit, envisaged government repurchase, financing, fiscal policy, Fiscal stance, GDP, Global, investment program, ISCR, Maghreb, Real effective exchange rates, reform strategy, State-owned banks