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Algerian President Unveils Economic Recovery Plan

Algerian President Unveils Economic Recovery Plan

Wednesday, 19 August, 2020 - 07:30
Algerian President Abdelmadjid Tebboune arrives for the opening of the 33rd Ordinary Session of the Assembly of the Heads of State and the Government of the African Union (AU) in Addis Ababa, Ethiopia, February 9, 2020. REUTERS/Tiksa Negeri/File Photo

Algerian President Abdelmadjid Tebboune unveiled Tuesday a plan to revive the economy and reduce dependence on oil and gas as a source of foreign currencies by the end of 2021.

As he chaired the opening of the National Conference on the Economic and Social Recovery Plan, he said that energy earnings currently account for 98 percent of total exports and the government aims to bring that figure to 80 percent from next year, while increasing the value of exports of non-energy products to USD5 billion from USD2 billion now.

Algeria’s foreign exchange reserves have fallen to USD57 billion when it was USD300 a few years ago, Tebboune said.

The president ordered reducing the import of goods and services and announced that starting 2021 importing fuel will be ‘forbidden’.

To achieve that goal, the authorities will allocate TND1,900 billion (USD14 billion) to help finance investment projects for the coming months.

In this context, Chairman of the Forum of Heads of Institutions Sami Akli said that such steps imply that the priority is now for institutions. This confidence was needed – especially that of banks – to fund the projects, he added.

The International Monetary Fund (IMF) forecast that Algeria's economy will shrink 5.2 percent this year due to repercussions of the coronavirus pandemic.

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