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Algeria Expects to Double Economic Growth in 2018

Algeria Expects to Double Economic Growth in 2018

Friday, 10 November, 2017 - 07:30
The port of Algiers is seen in Algiers, February 19, 2015. REUTERS/Amr Abdallah Dalsh

The Algerian government expects its economy to grow by 4 percent in 2018, up from the 2.2 percent forecast for this year, as oil prices recover, the government said in a document seen by Reuters.

In the 2018 budget, the government anticipates inflation for the new year to reach 5.5 percent, unchanged from its projection for 2017, Reuters reported.

The draft budget document said Algeria’s foreign exchange reserves would fall further to $84.6 billion in 2018 from $97 billion by the end of this year.

Financial pressures on Algeria have increased in recent years as world oil prices have fallen since the second half of 2014.

With the country's economy firmly dependent on oil revenues, oil and gas sales account for 60 percent of the budget and 95 percent of total exports.

Algeria is seeking to rely mainly on its own resources to cope with the growing fiscal deficit.

The parliament approved in October the amendment of the Monetary and Loan Law, which will allow the government to borrow from the central bank over the next five years; known as "overdrafts" .

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