IMF hails Algerian economic performance
The Algerian economy will be in relatively good condition in 2012 despite the economic certainties characterizing the global economic climate. The country is expected to achieve economic growth of around 3 to 3.5 percent, according to the International Monetary Fund (IMF).
The IMF continued to say that economic growth in Algeria remained strong in 2011 as oil prices strengthened the country's foreign reserves and budget. "Public expenditure plans will keep growth in non-oil sectors at 5 per cent and boost up GDP by 2.5 per cent."
The IMF stated that increased food prices in international markets and the augmentation of public wages in Algeria was not reflected in inflation rates due to ongoing food subsidies, increased family savings, increasing demand for imports, and prudent monetary policy. "Budget deficit will likely remain at 4 per cent of the total GDP as public expenditures as well as wage augmentation continue" added the IMF.
The same source indicated that the outlook is rosy in the short and medium term due to the robustness of the budget. Monetary stability will largely depend on oil price fluctuations in international markets in the medium term. Organization officials stated that Algeria will experience positive growth in the short term due to investments by public and oil companies.
Nevertheless, the IMF warns that a myriad of challenges face the Algerian economy, particularly the need to diversify the economy, improve the business climate, and reduce the unemployment rate. The financial organization urged Algeria to put the private sector at the top of its priorities because of its power to stimulate the economy and create jobs. (Source: english.nuqudy.com)