Algeria 

Algeria country policy

Policy established 12 November 2009

• ILC, bank guarantee or central public guarantee (unconditional)
• The country ceiling is 1500 mln euro
• Early warning signal 1150 mln euro
• - of which was used as at 2012-02-29 0 mln euro

Country class: 3

Overheidskopers: voorwaardelijke zekerheidseis

Public buyers: security preferred

Algeria country facts

Country Report last updated: 3 January 2012  Atradius Dutch State Business Economic Research   
Country: ALGERIA 

Political Situation
Fairly Stable

Head of state
President Abdelaziz Boutéflika (re-elected in April 2009 for a five-year-term); PM Ahmed Ouyahia.

Form of government
Coalition government of FLN (National Liberalisation Front). FLN won 136 seats out of 389 during May 2007 parliamentary elections.

Internal Economic Situation
Based On The Hydrocarbon Sector

General situation
Economic growth is supported by the Government Investment Program. Economic growth is estimated at 2.5% in 2011 and will increase in 2012 to 3.4%.. Government spending is aimed at improving infrastructures, housing and declining unemployment. The economy is still too dependent on the oil sector and needs to diversify. An underperforming banking sector, red tape and corruption limit foreign investment and private enterprises. To protect national economic interests and to promote domestic industries Algeria maintains tough restrictions on foreign investments and policies to reduce the imports. Inflation was 4.5% in 2011 and is expected to decline to 3.5% this year.  
 
External Economic Situation
Good; Ample International Reserves

Main sources of foreign exchange
petroleum, natural gas, and petroleum products account for 96% of exports.

Main foreign markets
US (24%), Italy (17%), Spain (10%), Canada (6%) in 2010

Main expenses of foreign exchange
capital goods, consumer goods and foodstuffs.

Balance of payments
In 2009 first CA deficit in more then 10 years as exports dropped. In 2010 surplus again due to recovery of exports and limited imports (due to government measures to decrease import spending). The revenues in excess of the budget are deposited in the oil stabilisation fund (OSF).