Experts: Economic Crisis Forced The Resumption Of Commercial Activity In Algeria

Economic experts estimate the losses of the trade sector, during the first month of the quarantine and shop closing procedures, at DZD 2000 billion, by calculating the activity of two million traders in Algeria, according to the data available at the National Center for Commercial Register.

They assert that despite the continuing health risk, and the fear of the expansion of the Covid19, but the return of commercial activity has become more than a necessity, to avoid an acute economic crisis that no one can succeed in solving it even in case of a return to the option of printing money.

However, economic experts ask citizens to be cautious and adhere to preventive measures.

The economic expert, Abderrahman Aya, told Echorouk that the option adopted by the Algerian government, by removing the quarantine measures from several commercial activities, was a top necessity during this phase, despite the continuing health risk, as the economic losses for the first month of the quarantine on the traders were very large and reached DZD 2000 billion, by counting the presence of two million active commercial registrations in Algeria, a million of them were forced to stop work during this period, which is a very high amount, which merchants and commercial registry owners cannot afford, and the financial capabilities of the Algerian state prevent it today from providing compensation for these traders.

“The situation has worsened, after the drop in the price of a barrel of oil that has reached minimum levels, as this situation will affect the revenues of the state treasury, which imposes at least the return of commercial activity inside Algeria to its normal state, to avoid additional losses, with merchants required to take the necessary measures to avoid transferring the epidemic that continues to exist in Algeria, and in the rest of the world, indicating that even the decision to print money will not save the treasury from the difficult situation it faces since the Algerian dinar is not valid for external transactions other than the euro and the dollar”.

“What made matters worse is the budget deficit, which was previously set at DZD 1500 billion, and the expectations of the continuation of the oil crisis throughout the summer, which is rare for an uncomfortable economic situation, which imposes the necessity of returning to the opening of stores that have been closed for a period. The management of the DZD 10.000 grant file witnessed many obstacles, and it was handed over to the heads of municipal councils who used the representatives of the neighbourhoods, in the absence of digitization, which imposes today the necessity for every merchant to return to activity, with due diligence and caution, and preventive measures to stem the spread of COVID19”.

For his part, Ammar Moussa, a member of the Finance and Budget Committee of the National People’s Assembly, confirms, in a statement to Echorouk, that the decision to re-open stores has become more than a necessity today, confirming that two correspondences have already been sent to the Prime Minister to allow the activity of merchants and craftsmen, because the government will be unable to compensate all of them for quarantine losses, indicating that such a decision will revive the beneficiaries, and at the same time will rid the government of the financial pressure that it may face compensating this category.

“Even if the activity of these people is prohibited, after a period, merchants may rebel against the decision to quarantine in search of a livelihood, which makes the mandatory return of commercial activities, despite health concerns, an urgent necessity during this period”.