An expected recovery in the Algerian economy in 2023 – Al-Hiwar Al-Jazaeryya

The World Bank expected a greater recovery in the Algerian economy during 2023, after achieving a qualitative leap in the first half of 2022, and called in its latest report to accelerate the structural reform efforts currently underway, to fortify macroeconomic prospects against market fluctuations.

And the World Bank report indicates that Algeria has made a qualitative leap thanks to the acceleration of non-hydrocarbon GDP growth, driven by the continuous recovery in the services sector, and the recovery of agricultural activity with the return of oil production to the pre-pandemic level. The World Bank expects that the economic recovery in Algeria will continue in 2023, supported by the growth of non-hydrocarbon sectors and public spending, and that export revenues will remain high, and this will lead to surpluses, in conjunction with an increase in hydrocarbon revenues. The report adds that the continued rise in global hydrocarbon prices led to a prolonged improvement in external balances, as the average export price of Algerian hydrocarbons increased by 70 percent on an annual basis in June 2022, and commodity export revenues reached $28.4 billion in the first half of the year. in 2022, also driven by a significant increase in non-hydrocarbon exports.

And the World Bank report indicated a slowdown in imports due to a moderate recovery in domestic demand and measures to reduce imports, as these dynamics yielded surpluses in the first half of 2022, and this was reflected through the upward trend of Algeria’s foreign exchange reserves – exchange reserves -, and the dinar began to appreciate. against the US dollar since the summer of 2022, and the rapid rise against the euro led to an improvement in the terms of trade.

In its new report, the World Bank commends the content of the supplementary finance law for the year 2022 and its dream of a significant increase in public spending, raising the budget allocated to increasing wages and the unemployment grant that was created for young job seekers for the first time, as well as strengthening support for basic foodstuffs within the framework of continuing the policy Social support to protect the purchasing power of citizens.

The report stressed the importance of hydrocarbon commodities, especially in light of the uncertainty surrounding the dynamics of the global economy, and concluded the report by highlighting the importance of continuing to implement reforms to enable the private sector to become an engine of sustainable growth and improve the macroeconomic framework in a necessary step to achieve the growth and stability of the Algerian economy.