Algeria's Economy Is Growing By 3.3% Despite The Oil Crisis

Algeria’s economy in 2016 grew by 3.3% compared to 3.7% in 2015, while the per capita GDP stood at $3.894 in 2016, according to the National Bureau of Statistics.

This growth was mainly due to the growth of the hydrocarbon sector, which marked a big jump in 2016, with a value added of 7.7% compared to 0.2% in 2015.

The agriculture sector grew slightly, while the rest of the sectors recorded a decline in growth due to the decline in public expenditure and the decrease in imports.

In terms of value, GDP rose by 4.2% in 2016 to 17,406.8 billion dinars compared to 1,16702 billion dinars in 2015, and the per capita GDP was estimated at $3.894 in 2016.

Inflation uptake in 2016 rose by 0.9% after falling to 6.5% in 2015 and 0.3% in 2014, reflecting a slowdown in the rate of lower international fuel prices.

On the other hand, household consumption grew by 3.3% in 2016, while the fixed capital formation rose by 5.3% compared to 5.7% in 2015, reflecting a decline in the growth rate of this index.

This decline resulted from the decline in imports of industrial processing materials since 2014, as well as a relative decline in the state’s processing expenses.

However, by calculating the nominal value the fixed capital formation grew by 6% to 7464.3 billion DZD in 2016 compared to 7041.7 billion DZD in 2015.

Although the growth rate of this index declined in volume, the rate of investment in the economy remains high, as the fixed capital formation in GDP reached 42.9% in 2016 compared to 42.2% in 2015.

This figure reflects “an investment effort that is still very significant, but it is supported – for the most part – by the state and the hydrocarbons sector”, according to the same source.