ALGERIA

Heightened uncertainties relating to leadership

C4

HIGH RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD 170.371 bn (World ranking 53, World Bank 2017)
Population 41.32mn (World ranking 34, World Bank 2017)
Form of state Republic
Head of government Abdelzaziz BOUTEFLIKA
Next elections 2019 (postponed), presidential
  • Strong hydrocarbon resources, with gas reserves estimated to last a further 54 years at current rates of extraction (and crude oil almost 22 years).
  • Political risk, with a divided society
  • High unemployment and underemployment.
  • Lack of economic diversification. Over-dependence on oil and gas (99% of export earnings).
  • Banking sector remains dominated by state enterprises that have to absorb losses from public sector companies.
  • Limited private sector opportunities and perceptions that the business environment (including regulations) is restrictive.
  • Regional dynamics are affected by continuing friction between Algeria and Morocco.
  • Oil and gas installations are vulnerable to periodic (but localised) attacks by terrorist groups.

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Italy 17%
1
18% China
Spain 13%
2
10% France
United States 13%
3
10% Italy
France 11%
4
8% Spain
Brazil 5%
5
6% Germany

Trade structure by product

(% of total)

Exports Rank Imports
Petroleum, petroleum products and related materials 59%
1
12% Road vehicles
Gas, natural and manufactured 37%
2
7% Other industrial machinery and parts
Inorganic chemicals 1%
3
7% Iron and steel
Fertilizers other than group 272 1%
4
6% Specialised machinery
Sugar, sugar preparations and honey 1%
5
6% Cereals and cereal preparations

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Stéphane Colliac

Senior Economist for France and Africa

stephane.colliac@eulerhermes.com

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