Corona and falling oil prices plague Algerian economy

According to IRNA on Saturday, surveys by the French-language magazine show that Algeria, which witnessed parliamentary elections several months ago, faces other problems in addition to internal political tensions, such as a sharp drop in oil prices, the recession and its aftermath. The Corona virus is spreading.

As Algeria’s economy is dependent on oil sales, declining exports and falling oil prices have severely affected the country’s economy, while Algeria continues to face an arms race with its western neighbor, the West, and the East. With a thousand kilometers of border with the crisis-stricken country of Libya, it certainly can not be unaffected by the turmoil of this regional crisis.

Algeria has taken the first steps towards the Fifth Republic at a time when it is facing many problems in the domestic dimension, economic problems and foreign relations; The path that does not seem to be smooth with the conditions of the global economy and the political developments in the North African region.

On the other hand, with the increase in Algeria’s foreign debt, the International Monetary Fund has sent warning messages stressing the need to restore stability to the country’s macroeconomy.

“Preliminary findings show rising budget deficit, foreign debt and volatile growth in Algeria,” Russia Today reported after a video conference between Algerian officials and the International Monetary Fund, Russia Today reported. Because the economic growth of this country has decreased from 8% in 2019 to -4.9%, but the economic growth of this country is expected to reach 3% this year (2021).

The average annual inflation in this country is estimated at 4.1 percent.

The fund also made several recommendations on fiscal, tax and exchange rate policies in Algeria as foreign debt increases.