Algeria: 2010 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 3, 2011

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Canonical URL: Algeria: 2010 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Algeria

Despite the effects of the international crisis, real nonhydrocarbon GDP (NHGDP) growth in 2009 exceeded the average of 6 percent.
Algeria’s good economic performance was supported by the authorities’ prudent fiscal and monetary policies and the favorable external environment.
The authorities’ policy to maintain the real effective exchange rate close to equilibrium, which is consistent with external stability, is encouraged.
Containing government spending would contribute to reducing pressures for real exchange appreciation and potential Dutch disease effects.

Real nonhydrocarbon GDP (NHGDP) growth in 2009 exceeded the average of 6 percent.
Performance attributed to:
- Prudent fiscal policies.
- Prudent monetary policies.
- Favorable external environment.

Maintain the policy of keeping the real effective exchange rate close to equilibrium to support external stability.
Contain government spending to:
- Reduce pressures for real exchange rate appreciation.
- Mitigate potential Dutch disease effects.

Subject: Credit, Current spending, Expenditure, Financial institutions, Money, Oil prices, Prices, State-owned banks
Keywords: capital expenditure, containing government spending, CR, Credit, Current spending, FDI regulation, Global, government, ISCR, Oil prices, private sector development, reform, Selected Issues paper, State-owned banks, wage bill