International Monetary Fund: "Algeria's Funds Would Run Out Within Five Years"

date 2016/10/05 views 396 comments 0

icon-writer Karima Khellas/English version: Dalila Henache

A special report by the International Monetary Fund shows that Algeria is suffering a real crisis and the depletion of its money during the next five years will worsen the situation if it will not accelerated the diversification of economic revenues, due to the declining oil prices, which is the main source of the national economy.

IMF advised Algeria to reduce its dependence on oil from the economic point of view, and dealing with the collapsing oil prices will not change the situation in the near future.

"Decline of oil prices since mid-2014 was very large, as prices have fallen by almost 70% to nearly $ 40 a barrel".

"Algeria is not the only country that is concerned with running out of money, but there are other countries like Iraq, Saudi Arabia, Iran, Oman, Bahrain, Yemen and Libya that will suffer from this crisis".

Algeria relied recently on the austerity policy in all sectors because of the oil crisis, and the government moved to look for economic alternatives to provide incomes for the country outside the hydrocarbon sector.

Many observers and experts advised the Algerian public authorities to take advantage of what they described as "The last chance" by taking crucial decisions and determine the orientations of economic policies in view of the geopolitical conditions that surround Algeria.

Algeria's oil revenues represent 60% of the state budget.

Meeting of the OPEC members that was held in Algeria last September reached an agreement of the need to set a ceiling of oil production between 32 to 32.5 million BPD, with the need to form a committee of experts to determine the quota of each country separately.

  • print