The Algerian Economy - Ahmed Benhabbour - Bog

... The financial ease recovered in Algeria was to put an end to a deep economic crisis. Nearly $730 billion in external revenues were collected between 2000 and 2014, of which nearly three quarters were recycled into public spending. Although a catch-up in terms of infrastructure has taken place, and the living conditions of the population have improved, the Algerian economy remains highly dependent on hydrocarbons, which account for nearly one-third of GDP, 96% of export revenues, 70% of tax revenues, and only 3% of the working population. In fact, this economic equation has remained unchanged for some 30 years. In a context marked by expectations of falling oil prices, stagnant oil production due to Covid-19, and a sharp rise in domestic energy demand, the economic growth model is no longer viable. However, Algeria should deepen measures to broaden the tax base and implement a program to diversify its economy in order to limit internal public debt and expand its non-hydrocarbon exports.