The economy of Algeria expanded by 4.1% in 2020. Growth was driven mainly by the recovering oil and gas sector and further economic expansion. Algeria has enormous possibilities to boost its economic growth, including huge foreign-exchange reserves derived from oil and gas. The national strategic option is therefore to revitalize the process intended to diversify the economy starting with the non-oil sector while deepening the reforms needed for the structural transformation of the economy.
The following tables and chart will tell the change details in last 5-10 years:
Algeria Distribution of workforce from the last 5 years:
Algeria Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Algeria GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Algeria’s economy. It employs almost 9.86% of the total workforce and contributed almost 11.97% in GDP.
The primary crops are wheat, barley, and potatoes. Farmers also have had success growing dates for export. Cultivation is concentrated in the fertile coastal plain of the Tell region, which represents just a slice of Algeria’s total territory. Altogether, only about 3 percent of Algerian territory is arable.
Major products in this Sector:
Dates: In 2019 Algeria sold 120,095 tons of dates. Across 2019 alone, the demand for Algeria dates (fruits category) has climbed, changing by 30.938 per cent compared to the year 2018. Between 2017 and 2019, dates’ exports increased by 157.62% earning Algeria US$110.65m for the year 2019. In 2019, Algeria supplied dates costing 110.65m USD, an improvement of 0.28% from 2018’s total dates export of 110.343m USD. Algeria’s portion of the world’s total dates’ exports in 2019 was less than 1%. Algeria is ranked position 62 in world exports of dates.
Olives: In 2019 Algeria shipped 111 tons of olive oil. In 2019 alone, the demand for Algeria olive oil (processed category) has reduced, with a change of -26.974 % compared to the year 2018. Between 2017 and 2019, olive oil’s exports went up by 85 pc netting the nation US$0.32m for the year 2019. In 2019, Algeria exported olive oil with a value of 0.32m USD, a reduction of -36.00% from 2018’s total olive oil export of 0.5m USD.
Agriculture Subsidy in Algeria:
The agriculture sector will remain a priority for the government in its attempt to diversify and revive the economy toward sustainable growth. Algeria’s agricultural development strategy emphasizes improving food production and quality to reduce Algeria’s import bill and ensure its food security. Therefore, new policies encourage the continued development, modernization, and industrialization of the agricultural sector to achieve self-sufficiency and promote exports.
It actively encourages modern industrial agriculture, using new technologies, digitization, innovative tools, and renewable energies. The government also urges large-scale agricultural investments in the highlands and the “Sahara” (the southern areas of Algeria). The development strategy promotes foreign direct investment and partnerships, with particular focus on cereals, oilseeds, sugar production, and crushing and refinery projects that support the processing industry.
Industry is an important part in the Algeria’ economy. It accounts for 37.41% of GDP and employed almost 30.73% of the workforce.
Major Industries in this Sector:
Oil and Gas: The oil and gas sector is the backbone of the economy, accounting for about 20 per cent of the gross domestic product, and 85 per cent of total exports. In terms of market size, Algeria has the tenth largest proven reserves of natural gas globally, is the world’s sixth-largest gas exporter, and has the world’s third-largest untapped shale gas resources with 20 trillion cubic meters of technically recoverable shale gas. It also ranks sixteenth in proven oil reserves, with 12.2 billion barrels of proven oil reserves, and exports roughly half of its total production. Sonatrach is the leading player in Algeria’s oil and gas sector, overseeing Algeria’s oil and gas exploration, production, transport, processing, and distribution. It controls roughly 80 percent of hydrocarbon production in Algeria, while IOCs account for the remaining 20 percent. In 2019 the total export from oil and gas was US$32.5 billion.
Mining: Algeria has proven deposits of valuable minerals such as gold, zinc, copper, lead, uranium and phosphates, as well as some gemstones, including diamonds. For the past few years it has also produced barite, bentonite, diatomite, dolomite, gold, gypsum, iron ore, limestone, nitrogen fertilizer, phosphate rock, salt and silver, among others. In 2019 this sector contributed almost 2% of the total export from Algeria. This is the second biggest export after Oil and Gas.
Service sector is an important part in the Algeria’s economy. It contributes almost 45.94% in the GDP and employed almost 59.41% of the total Algeria’s workforce.
Major Industries in this Sector:
Finance: Algeria’s banking sector is dominated by public banks, which suffer from high levels of non-performing loans to state-owned enterprises (SOEs). The six state-owned banks that dominate the market, alongside their 14 private sector peers, are currently seeking new revenue sources by expanding their product lines and working to boost traditionally low penetration and intermediation rates. The sector is overseen by the central bank, the Bank of Algeria (BoA), with public bank oversight and some regulatory functions handled by the Ministry of Finance.
Tourism: Tourism contribute about 3.6% to GDP to Algeria’s economy. The Algerian government is looking to develop the country’s travel and tourism industry, with emphasis on Saharan and cultural tourism. Algeria is ranked among the top 80 countries in the world in 2018. It is one of the main tourist attractions is the Sahara, the second largest desert in the world.
Top Companies in Algeria:
|1||Sonatrach||Oil and Gas|
|9||Watanya Telecom Algerie||Telecommunication|