Economy of Algeria Economy of Algeria.
In the economy of Algeria the hydrocarbons sector is the backbone accounting for roughly of budget revenues of GDP and over of export earnings Algeria has the fifth largest reserves of natural gas in the world and is the second largest gas exporter it ranks fourteenth for oil reserves Algiers' efforts to reform one of the most centrally planned economies in the Arab world stalled in as the country became embroiled in political turmoil.
Burdened with a heavy foreign debt Algiers concluded a one year standby arrangement with the International Monetary Fund in April and the following year signed onto a three year extended fund facility which ended April Some progress on economic reform Paris Club debt reschedulings in and and oil and gas sector expansion contributed to a recovery in growth since reducing inflation to approximately and narrowing the budget deficit Algeria's economy has grown at about annually since The country's foreign debt has fallen from a high of billion in to its current level of billion The spike in oil prices in and the government's tight fiscal policy as well as a large increase in the trade surplus and the near tripling of foreign exchange reserves has helped the country's finances However an ongoing drought the after effects of the November floods and an uncertain oil market make prospects for more problematic The government pledges to continue its efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector However it has thus far had little success in reducing high unemployment officially estimated at and improving living standards.
President Bouteflika has announced sweeping economic reforms which if implemented will significantly restructure the economy Still the economy remains heavily dependent on volatile oil and gas revenues The government has continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector but has had little success in reducing high unemployment and improving living standards Other priority areas include banking reform improving the investment environment and reducing government bureaucracy.
The government has announced plans to sell off state enterprises sales of a national cement factory and steel plant have been completed and other industries are up for offer In Algeria signed an Association Agreement with the European Union it has started accession negotiations for entry into the World Trade Organization.
Agriculture
Since Roman times Algeria has been noted for the fertility of its soil About a quarter of the inhabitants are engaged in agricultural pursuits More than acres km are devoted to the cultivation of cereal grains The Tell is the grain growing land During the time of French rule its productivity was increased substantially by the sinking of artesian wells in districts which only required water to make them fertile Of the crops raised wheat barley and oats are the principal cereals A great variety of vegetables and of fruits especially citrus products is exported.
A considerable amount of cotton was grown at the time of the United States' Civil War but the industry declined afterwards In the early years of the century efforts to extend the cultivation of the plant were renewed A small amount of cotton is also grown in the southern oases Large quantities of crin vegetal vegetable horse hair an excellent fibre are made from the leaves of the dwarf palm The olive both for its fruit and Petroleum and tobacco are cultivated with great success.
Algeria also exports figs dates esparto grass and cork.
Wine Production
Throughout Algeria the soil of favours the growth of vines The country in the words of an expert sent to report on the subject by the French government. can produce an infinite variety of wines suitable to every constitution and to every caprice of taste.