The Algerian Ministry of Finance expected the Algerian economy to grow by 4.2 percent in 2021, after it had previously expected a 4 percent growth late last year, amid expectations of better performance in the energy sector. According to the ministry, growth in the oil and gas sector is expected to reach 10.1 percent thanks to the gradual return to economic activity after an improvement in the health situation with regards to the Coronavirus.
Algeria is experiencing financial pressures due to the decline in revenues from energy exports, the main source of public finances; This prompted the government to try to cut spending on imports of goods and services. As a result, the trade deficit reached $15.2 billion in the first five months of 2021, down by 68 percent from the same period in 2020.
The Ministry of Finance indicated that oil and gas export revenues increased by 32.7 percent during the period from January to last May.
The Ministry of Finance expected that the inflation rate in 2021 would reach about 4 percent, coinciding with the resumption of activity and the gradual return to the normal supply of markets, especially food. As for the budget, according to the Ministry of Finance, the government continues to implement the strategy that is based on controlling the public spending and gradually improving tax revenues, while maintaining state support for vulnerable groups of the population through social transfers.
Source (Al-Sharq al-Awsat Newspaper, Edited)
