Algeria Economic Update, Spring 2024
Algeria’s growth was robust in 2023, and inflation started to decelerate. GDP growth accelerated to 4.1 percent, supported by hydrocarbon sector growth, as natural gas production compensated for successive crude oil production quota cuts. Non-extractive GDP growth reached 3.7 percent as investment growth accelerated, supported by a marked recovery in public investment, and leading to a surge in imports. Private consumption remained dynamic, stimulated by growing public sector wages, and pulling sectors serving households. Inflation remained at 9.3 percent over 2023 but moderated to 5.0 percent year-on-year in the first quarter of 2024, amidst a sustained decline in fresh food prices, a strong dinar, and lower import prices. Continuing to strengthen data systems would support investment and public policymaking. In 2023 and 2024, digitalization efforts accelerated, as did efforts from the Bank of Algeria and ONS to strengthen their publications, with notably the first GDP rebasing. The alternative data sources used in this report, such as satellite data on crop development or nighttime lights, represent a useful complement to conventional economic and social statistics. Yet, improving the availability, granularity, and timeliness of official economic data, most notably relating to activity, investment, and the labor market, remains of utmost importance. Enhanced data systems would support the authorities’ pivot towards performance-based budgeting and support evidence-based policymaking. They would also provide accurate and exhaustive economic data to researchers and analysts, potential domestic and international investors, alleviating economic uncertainty and fostering investment.
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| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-05-23
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| Subjects: | ECONOMIC GROWTH, DATA SYSTEMS, SDG 8, SDG 9, INDUSTRY, INNOVATION AND INFRASTRUCTURE, |
| Online Access: | http://documents.worldbank.org/curated/en/099728005212488535/IDU11df7b2e8125b7140881b35f1c055e9067a97 https://hdl.handle.net/10986/41591 |
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| Summary: | Algeria’s growth was robust in 2023,
and inflation started to decelerate. GDP growth accelerated
to 4.1 percent, supported by hydrocarbon sector growth, as
natural gas production compensated for successive crude oil
production quota cuts. Non-extractive GDP growth reached 3.7
percent as investment growth accelerated, supported by a
marked recovery in public investment, and leading to a surge
in imports. Private consumption remained dynamic, stimulated
by growing public sector wages, and pulling sectors serving
households. Inflation remained at 9.3 percent over 2023 but
moderated to 5.0 percent year-on-year in the first quarter
of 2024, amidst a sustained decline in fresh food prices, a
strong dinar, and lower import prices. Continuing to
strengthen data systems would support investment and public
policymaking. In 2023 and 2024, digitalization efforts
accelerated, as did efforts from the Bank of Algeria and ONS
to strengthen their publications, with notably the first GDP
rebasing. The alternative data sources used in this report,
such as satellite data on crop development or nighttime
lights, represent a useful complement to conventional
economic and social statistics. Yet, improving the
availability, granularity, and timeliness of official
economic data, most notably relating to activity,
investment, and the labor market, remains of utmost
importance. Enhanced data systems would support the
authorities’ pivot towards performance-based budgeting and
support evidence-based policymaking. They would also provide
accurate and exhaustive economic data to researchers and
analysts, potential domestic and international investors,
alleviating economic uncertainty and fostering investment. |
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