World Economic Forum: Algeria is world’s 86th most competitive economy

Algeria was ranked as the 86th most competitive economy — gaining one place from last year’s ranking — on the World Economic Forum’s global competitiveness index, which is topped by Switzerland.

The index represents an annual assessment of factors which lead to productivity and economic growth in 137 countries.

It said the financial sector is still weak after 10 years of the global crisis. It also showed that many countries could take benefit from innovation.

Algeria gained a place in the ranking as it was ranked 87 in 2016 while it was ranked 79 in 2014. In 2013 and 2012, it was ranked 100 and 110 respectively.

According to the same source, Algeria’s economy strong points are related to macroeconomy such as gross national savings % GDP (ranked 18th) and government debt (ranked 10th).

Education pillar improved Algeria’s ranking with primary education enrollment rate (ranked 51st) and secondary education enrollment rate (ranked 47th).

Market sized also reinforced Algeria’s ranking (ranked 36th). Yet, some pillars still have a negative impact on the Algerian economy competitiveness including transparency and policies (ranked 121st), efficacy of corporate board (ranked 135th), quality of air transport infrastructure (ranked 107th), budget deficiency (ranked 127th) and business impact if rules on FDI (ranked 133rd).

The Index also showed that Algeria is ranked 126th in availability of financial services. 

The index relies in its rankings on three factors: institutional factors, efficiency and innovation. 

Each of those factors has pillars such as infrastructure, macroeconomic environment, education, financial markets and markets size.