Algeria economy rocked by one-two punch

  • Date: 09-Aug-2020
  • Source: Gulf Today
  • Sector:Economy
  • Country:GCC
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Algeria economy rocked by one-two punch

GCC, Iraq reaffirm full compliance with Opec+ deal

Recession

Due to a lack of diversification, the Maghreb region's largest economy is highly dependent on oil revenues and exposed to fluctuations in crude prices.

The International Monetary Fund (IMF) forecast that Algeria's economy will shrink 5.2 percent this year.

Kedidir predicts that unless reforms are brought in, "a Pandora's box will be opened... riots, irredentism, religious extremism".

President Abdelmadjid Tebboune has already ruled out seeking loans from the IMF or other international financial agencies, in the name of "national sovereignty".

Algeria has painful memories of its 1994 recourse to the IMF and a structural adjustment plan that resulted in massive job cuts, shutdowns and privatisations.

New governance

The government is about to launch an economic recovery plan and decided at the start of May to halve the state's operating