Algerian president approves budget with gaping deficit

Algerian president approves budget with gaping deficit

Earlier this year Tebboune acknowledged the economy's "vulnerability" due to its failure for decades to diversify its oil dependent economy







AFP

, Thursday 31 Dec 2020







Algerian President Abdelmadjid Tebboune delivers a speech during a swearing-in ceremony in Algiers, Algeria December 19, 2019. REUTERS













Algerian President Abdelmadjid Tebboune on Thursday approved a 2021 budget which foresees a deficit of around 14 percent of GDP, the presidency said, as the oil-dependent country grapples with economic woes.

Algeria's economy has been clobbered by tumbling crude prices, a liquidity crisis, inflation, and the coronavirus pandemic which has brought many economic sectors to a standstill.

Africa's third biggest oil producer has also faced negative growth, with the International Monetary Fund forecasting that its economy will shrink 5.2 percent this year and that it will have one of the region's highest budget deficits.

Oil and gas represent around 90 percent of Algeria's total exports, and it uses the resulting revenues to subsidise fuel, water, health care, housing and basic goods.

Earlier this year Tebboune acknowledged the economy's "vulnerability" due to its failure for decades to diversify its oil dependent economy.