Algeria: Economy – Algeria to ‘Recoup’ 2020 Losses As of This Year

Algiers — The year 2021 is slated to see a gradual return of the economic activity in Algeria to levels that allow the country to “recoup” the losses incurred in 2020 and reduce the disequilibrium in State accounts, the Finance Ministry said Wednesday in a communiqué.

“The year 2021 is expected to know a stabilization of the country’s economy fundamentals, through a gradual return of the economic activity to levels allowing the recovery of the losses suffered in 2020 and a reduction of internal and external imbalances in the State’s accounts,” said the ministry in its document which evaluates the economic and social situation of the country during the first 5 months of 2021.

This recovery follows the global economy rebound as the Covid 19 pandemic is under control. Positive signs may constitute favorable prospects for the economies in developed and emerging countries.

In 2021, Algeria’s economic growth is projected to stand at +4.2% while the hydrocarbon growth is expected to rise to 10.1%. The non-hydrocarbon growth is expected to reach +3.2%.

In the first 5 months of 2021, the trade balance deficit has already fallen by 68%, falling to -$1.3 billion dollars, with imports of $15.2 billion USD, exports of hydrocarbons up + 32.7% and non-hydrocarbon exports up 81.71%.

=== Tax collections up 9.5% in 4 months===

The rebound of Algeria’s economic activity is reflected by the level of tax collections which increased by 9.5% to DZD 807.65 billion in late April 2021 compared to the same period 2020 (DZD737.69 billion), said the ministry.