Algeria

Hydrocarbon production plays a vital role in Algeria’s economy, with the oil and gas sector accounting for about a quarter of GDP, over 90% of product exports, and roughly 40% of government income. Over time, high global oil prices have helped Algeria preserve macroeconomic stability, amass significant foreign currency reserves, and minimize external debt. They have also allowed for important advances in economic and human development, with investments in infrastructure projects, social policies that alleviated poverty, and improvements in education, health and overall living standards.

Still, Algeria aims to diversify its economy, lessening its dependence on hydrocarbons and boosting job opportunities. With potential in agriculture, renewable energy and tourism, Algeria’s proximity to the European market represents an additional asset. 

However, economic diversification faces obstacles, including restrictions on foreign investors, underdeveloped capital markets, and a financial sector dominated by public banks. State-driven growth, bureaucratic red tape, corruption, and poor infrastructure further inhibit the development of alternative private-sector industries.