The Economy of Algeria, Africa Essay

1084 Words 5 Pages
Second largest country in Africa, tenth largest country in the world, diverse culture extending from the Mediterranean coast to the dunes of the Sahara Desert...Algeria. Even with its massive size the current status of Algeria’s economy is quivering in the lofty winds of the Tell Atlas Mountains. The economy tends to remain dominated by the state, which is accordingly a legacy of the country’s socialist post-independence development model. Hydrocarbons are the backbone for Algeria, accounting for 60% of budget revenues, 30% GDP, and 95% of export earnings. Reviewing the last five years we see the government halting privatization of state-owned industries, and increasing the restrictions of imports and foreign involvement. Algeria’s economy, …show more content…
Exports and imports have to increase because inflation is occurring worldwide.
Continuing with GDP, the composition consists of 33.7% for household, 20.6% for government, 32.9% for investment in fixed capital, 8.2% for investment in inventories, 33.3% for exports of goods and services, and -28.7% for imports of goods and services. In the past, Algeria relied tremendously on agriculture and farming, how today the sectors are divided differently; 9.4% for agriculture, 62.6% for industry, and 28% for services. The main agriculture products are wheat, barley, oats, grapes, olives, citrus, fruits, sheep, and cattle. This sectors does not meet the needs of food for the population, so 45% of the food is imported. Algeria is also a producer of cork and sandalwood products, along with the fishing industry, which is flourishing. The fishing (sardines, bonito, smelt, and sprats) are usually completed by small family-owned boats, not commercial fishing trawlers. The main industries with a 2.5% growth are petroleum, natural gas, light industries, mining, electrical, petrochemical, and food processing. Minerals mined in Algeria are iron, zinc, copper, calamine, and mercury; the country has over 300 quarries. However, agriculture still makes up the third most of the labor force for occupations following government and trade. Algeria exports petroleum, natural gas, and petroleum products making up 97% of exports to Italy, United States, Spain, France,…