Algeria: Economic and Political Outline

Economic Overview

After having slowed down due to the global economic crisis and a drop in the prices of oil and gas, the Algerian economy resumed its growth in 2010. Driven by the resumption of demand in the hydrocarbon sector and the strong performance of the service and construction sectors, aided by a program of public investment (PIP), growth reached 3.8% in 2010 (compared to 2.4% in 2009) and should continue in 2011.

In order to promote the growth of the domestic market, the Algerian government has launched a major construction policy, namely in the sector of transport infrastructures. Today, this policy is criticized because of two reasons. Firstly, at the time this program was started, the price of the oil barrel was very high. Current global market conditions have changed considerably and some observers question the suitability of this policy. More so because Algeria is running on a "negative multiplier", which means that the resources injected into the economy are much higher than the wealth generated. The new five-year plan for 2010-2014, which follows in the direction of the previous one, emphasizes modernization the infrastructures and privatization of the economy.

The current unemployment rate in Algeria is officially at 10% but some claim it is closer to 20%. The per capita GDP was USD 4,600 in 2008. It should be noted that there is a large discrepancy between the urban and rural living conditions.

Main Sectors of Industry

Agriculture contributes about 12% of the GDP and employs almost one fifth of the active population. The main crops are wheat, barley, oats, citrus fruit, wine grapes, olives, tobacco and dates. Algeria produces a large quantity of cork and has a significant amount of livestock farming.

The industry contributes nearly 55% of the GDP and employs a quarter of the population. The oil and gas sector accounts for the majority of budgetary income, and almost all of export income. Algeria is the 2nd biggest gas exporter in the world. It ranks 18th for its petroleum reserves and 10th for its gas reserves. The ores mined in big quantities are iron, lead, phosphate, uranium, zinc, salt and coal. The main activities of the manufacturing sector are industrial food processing, textile, chemical products, metals and construction materials.

The tertiary sector contributes about a third of the GDP and employs more than half of the workforce.

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

52.4/100

Position:

Mostly unfree

World Rank:

127/179

Regional Rank:

14/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Sources of General Economic Information

Ministries

The Ministry of Foreign Affairs
The Ministry of Finance
The Ministry of Industry and Restructuration
The Ministry of Share-holdings and Investment Promotion
The Ministry of Commerce

Statistical Office

The National Office of Statistics

Central Bank

The Bank of Algeria

Stock Exchange

The Organization and Monitoring Committee for Stock Exchange Transactions (COSOB)

Other Useful Resources

The Ministry of SMEs and Craft Industry

Main Online Newspapers

El Watan
Liberté
Le Quotidien d'Oran
L'Expression
Le Jeune Indépendant
La Nouvelle République
Algérie Presse Service (Official press agency)
La Tribune Online
El-Moudjahid

Economic Portals

The Algerian portal for political, economic, IT, sports and cultural news in Algeria and worldwide.
Ladoc, portal for Algeria, economic section
Algérie Businessweb, portal for economic and commercial information

Political Outline

Type of State

Republic, parliamentary democracy combined with presidential power.

Executive Power

The President of the Republic is the Head of State. He is elected by direct universal suffrage for 5 years. He appoints the Prime Minister and his government at the suggestion of the Prime Minister. The Prime Minister sets the amount of the State's expenses and revenue, and prepares some Bills.

Legislative Power

Parliament is composed of the Council of the Nation and the National Popular Assembly. Senators are elected by indirect universal suffrage for 6 years (renewable every 3 years). Deputies (MPs) are elected by direct universal suffrage. They examine successively Bills and private Bills, vote laws and monitor the government.

Main Political Parties

The main political parties in the country are: the FLN (National Liberation Front) which was previously the only legal party in the country, the RND (National Democratic Group), the FFS (Socialist Forces Front), the RCD (Culture and Democracy Group), the MRN (National Reform Movement) which is an Islamic party and the PT (Workers' Party). A law prohibiting political parties based on religion was promulgated in March 1997.

Current Political Leaders

President : Abdelaziz Bouteflika (since April 1999, re-elected in April 2004 and April 2009) – Independent
Prime Minister: Ahmed OUYAHIA (since June 2008)

Next Election Dates

National Popular Assembly: May 2012
Presidential elections : April 2014

Indicator of Freedom of the Press

World Rank:

122/179

Evolution:

11 places up compared to 2010

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Not Free

Political Freedom:

6/7

Civil Liberties:

5/7

Map of freedom 2010
Source: Freedom House