Algeria's Trade Balance Deficit Reached $12 Billion

Deficit in the trade balance during the first seven months of the current year reached over $ 12 billion, or 120.000 billion centimes, for the first time since independence, despite the belt-tightening policy, and the adoption of the quota and licenses system in the import, which are precautionary measures that were taken by the government, to reduce the gap in the trade balance, which is expected to expand more to reach by the end of the year $ 20 billion.

In terms of numbers, the deficit in the balance of trade equals in a matter of seven months, over 11.93 billion dollars, compared with $ 9.43 billion last year, which raises the question of the feasibility of the actions that are taken by the Trade and Industry Ministries, since the end of 2015, which main objective was keeping the Treasury’s dollars and reducing the deficit, which doubled to 26.5%. 

Exports declined in a shocking way, according to the figures that were revealed by the Customs, on Monday, and which were published by APS, at a value of $ 7 billion, to stand at the limits of $ 22.1 billion, compared with $31.48 billion during the same period of the current year.

In contrast, the import bill fell by a rate less than exports, to reach $27.07 billion, compared to 31.53 of last year, which means that it decreased by $4.46 billion only, despite all the measures that were taken to adjust the balance of trade, with the knowledge that exports covered only 56% of imports, compared to 70% in last year.

Hydrocarbons represent the most important sales of Algeria abroad by 93.73%, and the value of $14.19 billion, compared with $ 20.9 billion during the same period of 2015, with a decline that exceeded 32%, which is the equivalent of $ 6.27 billion, while exports outside hydrocarbons reached 6.27%, and fell to $ 949 million, down by 20%.

Countries that are mostly dealing with Algeria commercially, Italy and Spain ranked first by $2.9 b and $2.8 b respectively, followed by France with $1.73 billion, then the United States $1.09 billion, and for the key suppliers of Algeria, we find China that came at the top of the list by $808,4 b, followed by France by $049,3 b, Italy $854,2 b, and Spain by $159,2 b.