The World Bank report makes Algeria happy

The World Bank gives good news to Algeria and its people in a report, as businessmen and investors rush to pump millions of dollars to boost economic activity in Algeria.

Especially outside the hydrocarbon sector, considering that private investment and economic diversification are necessary to achieve long-term growth, which is what Algerian President Abdelmadjid Tebboune has been striving for over the past years.

The official report issued by the World Bank a few days ago showed expectations of an acceleration of economic activity and an improvement in macroeconomic balances in Algeria thanks to businessmen and investors from Europe and the Gulf states, which helps in promoting the growth of the Algerian economy.

In its report, the World Bank considered that private investment and economic diversification are necessary to achieve long-term growth, especially in the various activities outside the hydrocarbon sector, on which Algeria has depended over the past years.

Best area for investment 2023

In the same context, the World Bank economist in charge of Algeria, Cyril Depont, stressed that the dynamics of the country's economic activity are clear to all, despite the impact of the decline in oil production and the scarcity of rain in the agricultural sector on growth expectations for the year 2023. Nevertheless, the continuous rise in gas export prices supports the most optimistic forecasts for the trade balance. And the exchange reserves, the budget deficit, and the public debt in Algeria, which is what Algerian President Abdelmadjid Tebboune has been planning with his intelligence during the recent period.

The World Bank stated that the Algerian economy has become, thanks to the Europeans, recording continuous growth since the start of the Russian war on Ukraine, as the hydrocarbon sector witnessed in the same year a great recovery that made Algeria the first destination for the European market.

investment in Algeria

In this report, the World Bank highlighted the growth of Algeria's GDP, which reached 3.2% in 2022, and the rest of the sectors achieved a rapid growth of 4.3% in the current year's statistics.

The current account surplus amounted to ten percent of the GDP in Algeria, which led to the exchange reserves reaching 62 billion US dollars, which greatly enhances the growth of the Algerian economy.

The World Bank also added that inflation rates remained high in Algeria, with the rise in the prices of fresh food products, which prompted the authorities to review exchange rate and monetary policies to mitigate inflation, as well as to raise public expenditures to support the purchasing power of Algerian families.

Whereas, the representative of the World Bank in Algeria, Kamal Brahem, stressed that “despite the recent positive developments on the macroeconomic level, Algeria’s economic prospects remain affected by fluctuations in oil prices, which confirms the importance of continuing to implement reforms to enable the private sector to become an engine of sustainable growth and economic diversification.” in Algeria for many years