Algeria’s economy is growing far too slowly to provide enough jobs for a young, expanding, and increasingly restless population. The country's authorities need to boost competition, spur the creation of a digital economy, and revamp state-owned enterprises.
WASHINGTON, DC – Algeria faces the herculean task of transforming its economy to meet the pressing demands of a young, growing, and increasingly restless population. Despite the country’s favorable demographics, its economy remains almost entirely dependent on oil and natural gas, which account for 95% of merchandise exports. To provide enough jobs for the millions about to enter the labor market, Algeria’s economy needs to grow by more than 6% annually over the next few years. But GDP growth was a paltry 1.5% in 2018, and is projected to stay below 2% for the foreseeable future.
WASHINGTON, DC – Algeria faces the herculean task of transforming its economy to meet the pressing demands of a young, growing, and increasingly restless population. Despite the country’s favorable demographics, its economy remains almost entirely dependent on oil and natural gas, which account for 95% of merchandise exports. To provide enough jobs for the millions about to enter the labor market, Algeria’s economy needs to grow by more than 6% annually over the next few years. But GDP growth was a paltry 1.5% in 2018, and is projected to stay below 2% for the foreseeable future.