Algeria

August 2007 | Ratings Update

A 40% pay rise for public sector workers is one short term way in which the Algerian government is attempting to keep a lid on brewing social unrest in a country on the transition from a decade of civil war. Indeed, with almost daily strike action, ongoing terrorist attacks, high youth unemployment and an acute housing shortage are not the ingredients of domestic stability. This is reflected in Algeria's lower long term political risk score of 59.7 as opposed to the short term rating of 63.8.

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