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Algeria Upgrades Economic Growth to 4.2% this Year

Algeria Upgrades Economic Growth to 4.2% this Year

Thursday, 10 June, 2021 - 10:15
A vegetable vendor talks to a client at a food market in Algiers, Algeria, Tuesday April 21, 2020. (AP)

Algeria expects its economy to grow by 4.2% in 2021, revising up a 4% forecast announced late last year, as the OPEC member predicts better performance in the energy sector, the finance ministry said on Wednesday.

Growth in the oil and gas sector is projected at 10.1% thanks to a “gradual return to economic activity after an improvement in the health situation” linked to the coronavirus, it said in a statement.

Algeria has been under financial pressure due to a fall in energy export earnings, the main source of state finances, forcing the government to try to cut spending on imports of goods and services.

As a result, the country’s trade deficit reached $15.2 billion in the first five months of 2021, down 68% from the same period in 2020, the statement said.

Oil and gas export revenues rose 32.7% during the January-May period, it added, without providing details.

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