FMI: Unemployment rate increases, the deficit and inflation continue in Algeria

A recent report of the International Monetary Fund announced on worrying signs about the general economic situation of the country, as it spoke about the unemployment rate increase, inflation and the continuation of the trade deficit, and the current account balance with negative rates at the limits of 17% for the first and 15% for the second.

Second International Fund’s Report during the current year, which carried a less melancholic picture about that report, which it released last April, kept the threat scenario that hangs over the country’s economic situation, even though Algeria’s economic growth reached 3% during 2015 before raising it to 3.9% during 2016, compared to a growth rate that did not exceed 3.8% over the past year.

In its report on the global economy’s prospects, which it released, on Tuesday, on the occasion of the organization’s annual meetings between October 9 and 11 in Lima, Peru. The International Monetary Fund slightly reviewed the increase of his predictions and expectations about the increase of the gross domestic product (GDP) of Algeria compared to the projected figures in last April.

In the context of these specific expectations that were identified six months ago, the “Bretton Woods” Foundation predicted a growth rate of Algeria at 2.6% in this year, with a difference of 0.4 points compared to the new estimates.

 FMI went too far and identified the growth rate for Algeria at the rate of 3.5% in 2020.

“Inflation rate will rise, although the natural result of the prevailing situation will exceed 4.2% during the current year, and it is expected not to be far away from this percentage and with the interval of 1% only next year, after the rate of inflation reached last year 2.9%.”

In its predictions for the month of April, the fund had predicted that the inflation rate will move to 4% in 2015 and also in 2016. With regard to the current account balance the fund said it would remain negative by 17.7% of the GDP in 2015, and a negative at the limits of 16.2% in 2016 compared to 4.5% last year, with a difference of 13.2%.