Structural Reforms Key To Sustained Strong Growth

May 2007 | Economic Analysis

Elevated oil prices look set to continue to boost Algeria's growth, producing ample funds for the government's expansionary fiscal policies and infrastructure development that have underpinned the country's robust economic expansion in recent years. Since the end of the civil war in 2002, the country has grown at annual average rate of 5.5% in real terms, and we see this momentum being maintained over the forecast period as the economy expands at a rate above 4.5%. That said, with privatisation efforts still progressing at an unsatisfactory rate, the largely state-dominated economy's dependence on the energy sector remains a key risk.

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