## Algeria at a Crossroads

_IMF News, December 2, 2021_

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**Canonical URL:** [Algeria at a Crossroads](https://www.imf.org/en/news/articles/2021/12/01/na120221-algeria-at-a-crossroads)

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## Bibliographic details
- Authors: Mahmoud Harb IMF Middle East, Central Asia Department December
- Published: December 2, 2021

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### Recovery from pandemic and oil shock
- The Algerian economy is gradually recovering from the initial impact of the pandemic and last year’s oil price shocks.
- The health crisis has eased; most containment measures have been lifted, and domestic production of vaccines is supporting immunization efforts.
- With the rebound in hydrocarbon production and prices, growth has resumed, but the outlook is highly uncertain.

### Macroeconomic imbalances and policy recalibration
- The 2020 shocks exacerbated the economy’s longstanding imbalances, accelerating the rise in government debt and the fall in international reserves.
- Policy recalibration is needed to safeguard macroeconomic stability.

### Government Action Plan and reforms
- The Government Action Plan unveiled in September incorporates wide-ranging reforms to:
  - support the recovery,
  - unleash new growth drivers, and
  - bolster governance and social cohesion.
- Progress on these reforms is crucial for transitioning to a more stable, diversified and inclusive growth model.

### Sources of growth, diversification, and human capital
- Algeria has many untapped sources of growth and jobs.
- Developing these sources requires a profound transformation of the economy and diversifying it away from hydrocarbons.
- The recovery from the pandemic provides a unique opportunity for Algeria to rebuild resilience and harness the potential from its dynamic youth.

*By Mahmoud Harb, IMF Middle East and Central Asia Department — December 2, 2021*

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## References

- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Read the press release](https://www.imf.org/en/News/Articles/2021/11/19/pr21341-algeria-imf-executive-board-concludes-2021-article-iv-consultation-with-algeria)
- [Algeria and the IMF](https://www.imf.org/en/Countries/DZA)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2021/12/01/na120221-algeria-at-a-crossroads_