Algeria: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Algeria

IMF Staff Country Reports, June 13, 2018

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Algeria continues to face important challenges posed by the fall in oil prices four years ago.
Despite a sizeable fiscal consolidation in 2017, the fiscal and current account deficits remain large.
Real GDP growth slowed sharply, mainly driven by a contraction in hydrocarbon production, although growth in the nonhydrocarbon sector was stable.
Unemployment increased to 11.7 percent in September 2017 from 10.5 in September 2016 and remains particularly high among the youth and women.
Average inflation declined from 6.4 percent in 2016 to 5.6 percent owing to slowing inflation for manufactured goods and services, and stood at 3.4 percent year-over-year in April 2018.

Unemployment: 10.5 percent in September 2016; 11.7 percent in September 2017.
Inflation: 6.4 percent in 2016; 5.6 percent (annual average) in 2017; 3.4 percent year-over-year in April 2018.
Growth dynamics: Real GDP growth slowed sharply (driven by contraction in hydrocarbon production); nonhydrocarbon sector growth remained stable.
Fiscal and external balances: Fiscal deficit and current account deficit described as "large" despite fiscal consolidation in 2017.

Subject areas identified: Banking, Central banks, Financial institutions, Fiscal consolidation, Fiscal policy, Oil prices, Prices, Public debt, Quasi-fiscal operations, State-owned banks.
Keywords provided: central bank financing, CR, deficit, exchange rate depreciation, exchange regime, Fiscal consolidation, Global, IMF staff estimate, ISCR, NHC deficit, Oil prices, Policy, Quasi-fiscal operations, State-owned banks.