Economy - overview The hydrocarbons sector is the backbone of the economy, accounting forroughly 57% of government revenues, 25% of GDP, and almost all export earnings;Algeria has the fifth-largest reserves of natural gas in the world and isthe second largest gas exporter; and it ranks fourteenth for oil reserves.Algiers' efforts to reform one of the most centrally planned economies inthe Arab world began after the 1986 collapse of world oil prices plunged thecountry into a severe recession. In 1989, the government launched a comprehensive,IMF-supported program to achieve economic stabilization and to introduce marketmechanisms into the economy. Despite substantial progress toward economicadjustment, in 1992 the reform drive stalled as Algiers became embroiled inpolitical turmoil. In September 1993, a new government was formed, and onepriority was the resumption and acceleration of the structural adjustmentprocess. Buffeted by the slump in world oil prices and burdened with a heavyforeign debt, Algiers concluded a one-year standby arrangement with the IMFin April 1994. Following a Paris Club debt rescheduling in 1995, a robustharvest, and elevated oil prices, the economy experienced a strong recoveryand key economic improvements. Recent and planned investments in developinghydrocarbon resources are likely to increase growth and export earnings.

GDP purchasing power parity - $115.9 billion (1996 est.)

GDP - real growth rate 4% (1996 est.)

GDP - per capita purchasing power parity - $4,000 (1996 est.)

GDP - composition by sector
agriculture: 12%
industry: 50%
services: 38% (1995 est.)

Inflation rate - consumer price index 19.8% (1996 est.)

Labor force
total: 7.8 million (1996 est.)
by occupation: government 29.5%, agriculture 22%, construction and public works 16.2%,industry 13.6%, commerce and services 13.5%, transportation and communication5.2% (1989)

Unemployment rate 28% (1996 est.)

Budget
revenues : $14.3 billion
expenditures: $17.9 billion, including capital expenditures of $NA (1995 est.)

Industries petroleum, light industries, natural gas, mining, electrical, petrochemical,food processing

Industrial production growth rate NA%

Electricity - capacity 6.01 million kW (1994)

Electricity - production 18.7 billion kWh (1994)

Electricity - consumption per capita 583 kWh (1995 est.)

Agriculture - products wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle

Exports
total value: $11 billion (f.o.b., 1996 est.)
commodities: petroleum and natural gas 97%
partners: Italy 18.8%, US 14.8%, France 11.8%, Spain 8%, Germany 7.9% (1995 est.)

Imports
total value : $10.5 billion (f.o.b., 1996 est.)
commodities: capital goods, food and beverages, consumer goods
partners: France 29%, Spain 10.5%, Italy 8.2%, US 8%, Germany 5.6% (1995 est.)

Debt - external $32 billion (1996 est.)

Economic aid
recipient: ODA, $420 million (1996)

Currency 1 Algerian dinar (DA) = 100 centimes

Exchange rates Algerian dinars (DA) per US$1 - 57.136 (January 1997), 54.749 (1996),47.663 (1995), 35.059 (1994), 23.345 (1993), 21.836 (1992)

Fiscal year calendar year

NOTE: The information regarding Algeria on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Algeria Economy 1997 information contained here. All suggestions for corrections of any errors about Algeria Economy 1997 should be addressed to the CIA.