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ALGERIA : 50 YEARS OF INDEPENDENCE – 5TH JULY 1962 – 5TH JULY 2012 -

ALGERIA’S FIFTIEH ANNIVERSARY OF INDEPENDENCE COMES AT A TIME WHEN MACRO-ECONOMIC STABILITY AND LOW DEBT ARE CREATING A STABLE CLIMATE FOR FOREIGN INVESTMENT.

BOTH THE IMF AND THE WORLD BANK HAVE RECENTLY PRAISED ALGERIA FOR MAINTAINING MACRO-ECONOMIC STABILITY IN 2011, PROOF THAT THE COUNTRY IS NOW REAPING THE BENEFITS OF FOLLOWING ITS OWN PATH.

ALTHOUGH BOTH INSTITUTIONS CONTINUE TO REITERATE THE NEED FOR ALGERIA TO FURTHER DIVERSIFY ITS ECONOMY – A PROCESS WHICH IS ALREADY UNDERWAY – THEY HAVE ALSO APPLAUDED THE PRUDENT MACRO-ECONOMIC MANAGEMENT THAT HAS ALLOWED THE FORMATION OF LARGE FOREIGN RESERVES.

ALGERIA HAS ALSO BEEN CONGRATULATED FOR THE REVENUES PAID INTO ITS HYDROCARBON STABILISATION FUND, SET UP TO SHIELD THE COUNTRY FROM EXTERNAL PRICE VOLATILITY, AND THE MAINTENANCE OF VERY LOW DEBT LEVELS. THIS IS A WELCOME TURNAROUND FROM THE SITUATION 12 YEARS AGO AT THE START OF THE MILLENNIUM WHEN ALGERIA’S EXTERNAL DEBT TOTALLED MORE THAN $30 BILLION.

THE COUNTRY’S EXTERNAL DEBT WILL FALL THIS YEAR TO THE RECORD LOW OF $4 BILLION OR 1.7% OF GDP – A FIGURE MOST WESTERN ECONOMIES ARE FINDING IMPOSSIBLE TO ACHIEVE, AND WHICH OUTSHINES THE OTHER 20 COUNTRIES OF THE MENA REGION WHERE THE AVERAGE DEBT TO GDP RATIO IS MORE THA 25%.

ALGERIA ALSO MANAGED TO STABILISE INFLATION AT 3.9% LAST YEAR WHILE ACHIEVING ECONOMIC GROWTH OF 2.6% AND A CURRENT  ACCOUNT SURPLUS ESTMATED AT 9.3%.

TO ENSURE THAT ANY FURTHER GLOBAL DOWNTURN WOULD NOT ADVERSELY AFFECT ALGERIA’S NATIONAL PURSE, SHOULD OIL AND GAS RECEIPTS SLOW DOWN, THE COUNTRY PARTNERED WITH THE WORLD BANK LAST YEAR TO ESTABLISH A FRAMEWORK FOR COOPERATION ON DIVERSIFICATION OF THE ECONOMY.

 

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PHLDUCX – Publisher & Executive Editor- WWW.CONVERSATIONPRIVEE.COM