The International Monetary Fund (IMF), after completing the Article IV consultations that its Executive Board is conducting with Algeria for the year 2021, revealed that the Algerian economy has gradually recovered from the repercussions of the Covid-19 pandemic and the shocks that the oil markets witnessed in 2020.
According to the Fund, the Algerian economy is expected to recover in 2021 and 2022, but the expectations about it are still uncertain and difficult, indicating that after the contraction in Algeria’s economy in 2020 by 4.9 percent, the real GDP grew on an annual basis by 2.3 percent in the first half of 2021 as a result of the recovery in hydrocarbon production and prices and the easing of containment measures for Covid-19.
The IMF indicated a remarkable improvement in the external current account balance during the first six months of this year, after it declined significantly last year. It also noted that while Algeria's economy is witnessing a gradual recovery, the weaknesses that preceded the pandemic remain and risks to the economic outlook are high. The IMF called for the adoption of a coherent policy mix to support macroeconomic stability and promote sustainable, resilient and inclusive growth. The Fund warned that Algeria risks unprecedented financing needs in the medium term if it continues to suffer from high fiscal deficits, and urged major changes in its economic policy.
Source (The New Arab Newspaper, Edited)
