Economic trends
After having slowed down due to the global economic crisis and a drop in the prices of oil and gas, the Algerian economy resumed its growth in 2010. Driven by the resumption of demand in the hydrocarbon sector and the strong performance of the service and construction sectors, aided by a program of public investment (PIP), growth reached 3.8% in 2010 (compared to 2.4% in 2009) and should continue in 2011.
In order to promote the growth of the domestic market, the Algerian government has launched a major construction policy, namely in the sector of transport infrastructures. Today, this policy is criticized because of two reasons. Firstly, at the time this program was started, the price of the oil barrel was very high. Current global market conditions have changed considerably and some observers question the suitability of this policy. More so because Algeria is running on a "negative multiplier", which means that the resources injected into the economy are much higher than the wealth generated. The new five-year plan for 2010-2014, which follows in the direction of the previous one, emphasizes modernization the infrastructures and privatization of the economy.
The current unemployment rate in Algeria is officially at 10% but some claim it is closer to 20%. The per capita GDP was USD 4,600 in 2008. It should be noted that there is a large discrepancy between the urban and rural living conditions.
Main branches of industry
Agriculture contributes about 12% of the GDP and employs almost one fifth of the active population. The main crops are wheat, barley, oats, citrus fruit, wine grapes, olives, tobacco and dates. Algeria produces a large quantity of cork and has a significant amount of livestock farming.
The industry contributes nearly 55% of the GDP and employs a quarter of the population. The oil and gas sector accounts for the majority of budgetary income, and almost all of export income. Algeria is the 2nd biggest gas exporter in the world. It ranks 18th for its petroleum reserves and 10th for its gas reserves. The ores mined in big quantities are iron, lead, phosphate, uranium, zinc, salt and coal. The main activities of the manufacturing sector are industrial food processing, textile, chemical products, metals and construction materials.
The tertiary sector contributes about a third of the GDP and employs more than half of the workforce.
International trade
Algeria has an open economy, foreign trade representing three quarters of the GDP.
Algerian exports grew by 223% between 2002 and 2008, mainly due to the explosion of world’s oil prices, oil representing the near totality of the country’s exports. During this period, the trade balance has generated a significant surplus giving Algeria comfortable foreign currency reserves (USD 150 billion in 2009). Unfortunately, in 2010, the drop in global oil prices and the sustained high levels of imports have lead to a significant worsening of the Algerian trade balance. This should nevertheless remain in surplus in 2011.
The main trade partners of Algeria are the European Union, the NAFTA countries (Free Trade Agreement between United States, Canada, and Mexico) and China.
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