Algiers – The year 2021 should see a gradual return of economic activity in Algeria to levels allowing the country to “recover” the losses suffered in 2020 and to reduce the imbalance in the accounts of the State, the ministry said on Wednesday. of Finance in a press release.
“The year 2021 should see a stabilization of the fundamentals of the country’s economy, through a gradual return of economic activity to levels allowing the recovery of losses suffered in 2020 and a reduction of internal and external imbalances in the accounts. of the State ”, declared the ministry in its document which evaluates the economic and social situation of the country during the first 5 months of 2021.
This recovery follows the rebound in the global economy as the Covid 19 pandemic is under control. Positive signs may constitute a favorable outlook for the economies of developed and emerging countries.
In 2021, Algeria’s economic growth should stand at + 4.2% while the growth of hydrocarbons should reach 10.1%. Growth excluding hydrocarbons should reach + 3.2%.
In the first 5 months of 2021, the trade balance deficit has already shrunk by 68%, falling to $ 1.3 billion, with imports of $ 15.2 billion, hydrocarbon exports rising of + 32.7% and non-hydrocarbon exports up by 81.71%.
=== Tax revenue up 9.5% in 4 months ===
The rebound in Algerian economic activity is reflected in the level of tax revenues which increased by 9.5% to 807.65 billion DZD at the end of April 2021 compared to the same period 2020 (737.69 billion DZD) , specified the ministry.
Credits to the economy allocated by public banks reached, at the end of March 2021, only an outstanding amount of more than 9 711 billion DZD (up by 67 billion DZD compared to the end of December 2020). DZD 4,087 billion of these credits were allocated to the private sector.
The share of investment credits represents 75% of total credits granted by public banks, up by DZD 5 billion while operating credits recorded an increase of DZD 64 billion.
In addition, average inflation in 2021 would be around 4%, in connection with “the resumption of activity and the gradual return to normal supply of markets, especially food,” added the source.
With regard to the State budget, the Government, in application of the program of the President of the Republic, continues to implement the policy aimed at the consolidation of public expenditure and the gradual improvement of tax revenue, while preserving the support of the public authorities to vulnerable populations through social transfers, underlined the ministry.
And to mitigate the impacts of the Covid-19 health crisis, the state has allocated budgetary allocations, within the framework of the 2021 fiscal year, of nearly 530 billion DZD, according to the ministry’s note.