Embassy of Algeria , Tokyo, Japan

MACRO ECONOMIC INDICATORS

Today, the Algerian economy is growing steadily; it is performing well, with all of the country's major macroeconomic indicators are on an upward trend. In recent years, the economy has reached an average annual growth rate of 5%. Inflation has remained below 4% and unemployment is steadily decreasing. High oil prices allowed the country to strengthen its fiscal and external balances, and to build up massive foreign exchange reserves estimated at USD134 billion at the end of 2008. Hydrocarbons account for around 45% of GDP. The other main sectors are the tradable services sector (20%), other services (13.4%), public works (8%), agriculture (7.6%) and industry (5%). The immediate and mid-term prospects for the Algerian economy are bright, with the IMF forecasting the economy to grow at an average rate of 5-6% per annum for the next three to four years. Growth will continue to be supported by oil and gas revenues.

The Algerian authorities have recently taken series of measures to promote foreign investments into the country, by establishing a fundamental policy in order to reassure foreign investors and international institutions and eventually gain accession to the WTO.

Despite the international economic crisis, the Algerian economy remained safe and has continued to progress and expand. The impact of the crisis on the fall of oil prices is still limited.

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