Algeria posts 2.3% GDP growth in the first quarter – SABC News

Algeria’s gross domestic product (GDP) rose 2.3% in the first quarter of this year, helped by a better performance of the energy sector, official data showed on Saturday, after a contraction of 3.9% a year earlier.

The Algerian economy, a member of OPEC, depends heavily on oil and gas, which represent 9% of its total export earnings and 60% of the state budget.

The country’s oil and gas sector grew 7.5% in the January-March period after contracting 13.3% a year earlier, according to figures released by the National Bureau of Statistics.

The non-energy sector rose 1.4% after declining 1.2% a year earlier, according to the figures.

In June, Algeria’s finance ministry said it expects its economy to grow 4.2 percent in 2021, revising upward the 4 percent forecast announced late last year.

The growth of the oil and gas sector is projected at 10.1% thanks to a “gradual return to economic activity after an improvement in the health situation” linked to the coronavirus, he said in a press release.

Algeria has been under financial pressure due to declining revenues from energy exports, the main source of state funding, forcing the government to try to reduce spending on imports of goods and services.

As a result, the country’s trade deficit reached $ 15.2 billion in the first five months of 2021, down 68% from the same period in 2020, the statement said.

Oil and gas export revenues increased 32.7% during the January-May period, he added, without providing details.

Source link

About Kristine McNally

Avatar

Check Also

Nigeria tries to revive zombie project

Nigeria’s oil industry has faced a host of challenges – endless litigation, social unrest, majors …

Leave a Reply

Your email address will not be published. Required fields are marked *