Algerian President Approves Budget with Gaping Deficit

Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)
Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)
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Algerian President Approves Budget with Gaping Deficit

Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)
Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)

Algerian President Abdelmadjid Tebboune on Thursday approved a 2021 budget which foresees a deficit of around 14 percent of GDP, the presidency said, as the oil-dependent country grapples with economic woes.

Algeria's economy has been clobbered by tumbling crude prices, a liquidity crisis, inflation, and the coronavirus pandemic which has brought many economic sectors to a standstill.

Africa's third biggest oil producer has also faced negative growth, with the International Monetary Fund forecasting that its economy will shrink 5.2 percent this year and that it will have one of the region's highest budget deficits.

Oil and gas represent around 90 percent of Algeria's total exports, and it uses the resulting revenues to subsidise fuel, water, health care, housing and basic goods.

Earlier this year Tebboune acknowledged the economy's "vulnerability" due to its failure for decades to diversify its oil dependent economy.

The budget Tebboune approved on Thursday, after it was passed by the two chambers of parliament, forecasts a deficit of 2,700 trillion dinars (around $20.4 billion, 17.6 billion euros), or 14 percent of GDP.

Furthermore, its hard currency reserves have dropped from more than 162 billion euros in 2014 to less than 57 billion euros late last year.

Tebboune has already ruled out seeking loans from the IMF or other international financial agencies, but pledge to launch an economic recovery plan.

The president returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget.

Algeria has recorded just shy of 100,000 cases of the novel coronavirus and 2,756 deaths.



US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
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US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo

The United States is close to clinching several trade deals ahead of a July 9 deadline when higher tariffs kick in, US Treasury Secretary Scott Bessent said on Sunday, predicting several big announcements in coming days.

Bessent told CNN's "State of the Union" the Trump administration would also send out letters to 100 smaller countries with whom the US doesn't have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.

"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said.

Bessent denied that August 1 was a new deadline for negotiations. "We are saying this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he told CNN, Reuters reported.

The US Treasury chief said the Trump administration was focused on 18 important trading partners that account for 95% of the US trade deficit. But he said there had been "a lot of foot-dragging" among countries in getting closure on a trade deal.

He declined to name countries that were close to a trade agreement, adding, "because I don't want to let them off the hook."

Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.

Since taking office, the US president has set off a global trade war that has upended financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.

Trump on April 2 announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. The news roiled financial markets, prompting Trump to suspend all but the 10% base rate for 90 days to allow more time for negotiations to secure deals, but the process has proven more challenging than expected.

That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1.

Bessent, asked about the 70% rate, referred back to the April 2 list, but that did not include such high rates.