Algeria Economic Statistics

Silvia Andreoletti

Silvia is a Reporter at Trade Finance Global. She is also currently finishing her BA in Philosophy, Politics, and Economics at New College, Oxford, with a focus on financial markets, game theory, and international relations.

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Importing from Algeria

Algeria’s biggest export by far is oil, its most important exports being petroleum gas and crude and refined oil; it also exports some amount of nitrogenous fertilisers and metal. Algeria holds the world’s third-largest reserves of shale gas, which along with oil makes up 90% of its total exports. The industry has been expanding in recent years owing to increased demand from the European market after the start of the Ukraine war. Algeria has a substantial trade surplus which is expected to stay constant or improve in the next years, especially if the hydrocarbons sector continues to benefit from public and foreign investment.

The Algerian economy is characterised by heavy bureaucracy and vested interests, and the country consistently scores lower than its neighbours in corruption and ease of doing business reports. However, the government has been taking steps since 2020 to promote foreign investment, such as removing restrictions on foreign ownership of Algerian firms and passing laws governing credit and public-private partnerships. This, along with a focus on renewable energy investment and a growing defence market, should promote the economy and bolster it against shifts in oil and gas prices. 
The Hirak protest movement that called for political reform and caused internal instability in 2019 is unlikely to return due to government crackdowns and a more optimistic economic outlook. Algeria is democratic, but elections have been criticised for lack of transparency; the ruling party and the military regulate the media and any protest movements. While there have been intermittent tensions with Morocco over the status of the Western Sahara, the political situation both externally and internally is stable and unlikely to deteriorate as long as the economy remains growing.

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