Algeria: 2009 Article IV Consultation: Staff Report; and Public Information Notice
IMF Staff Country Reports, March 2, 2010
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- Algeria: 2009 Article IV Consultation: Staff Report; and Public Information Notice
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Bibliographic details
- Published: March 2, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451811605.002
Executive summary and main findings
- The report reviews the Article IV Consultation with Algeria on economic developments and policies.
- Algeria has enjoyed several years of strong economic performance driven by public spending.
- Nonhydrocarbon (NH) growth and job creation are largely sustained by public spending.
- There is a pressing need to accelerate structural reforms to diversify the economy, letting a competitive and outward-oriented private sector emerge.
- Executive Directors welcomed Algeria’s strong economic performance in recent years, with solid NH growth and low inflation.
Policy challenges and emphasis
- Structural reform priority: accelerate reforms to diversify away from hydrocarbon dependence and foster a competitive, outward-oriented private sector.
- Fiscal and public spending context: public spending has been the main driver of NH growth and job creation, indicating vulnerability to changes in fiscal stance or hydrocarbon revenues.
- Macroeconomic environment: continued focus on maintaining low inflation while supporting nonhydrocarbon growth.
Subject coverage and keywords
- Subjects: Credit, Expenditure, Money, Oil prices, Prices, Public debt, Revenue administration
- Keywords: CR, Credit, exchange rate, fresh food price, Global, headline inflation, inflation low, ISCR, Maghreb, MFD expert, monetary policy, Oil prices, public spending demand, revenue