Economy - overview The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the fifth-largest reserves of natural gas in the world and is the second largest gas exporter; it ranks 14th in oil reserves. Algeria's financial and economic indicators improved during the mid-1990s, in part because of policy reforms supported by the IMF and debt rescheduling from the Paris Club. Algeria's finances in 2000 and 2001 benefited from the temporary spike in oil prices and the government's tight fiscal policy, leading to a large increase in the trade surplus, record highs in foreign exchange reserves, and reduction in foreign debt. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector has had little success in reducing high unemployment and improving living standards. In 2001, the government signed an Association Treaty with the European Union that will eventually lower tariffs and increase trade.

GDP purchasing power parity - $177 billion (2001 est.)

GDP - real growth rate 3.8% (2001 est.)

GDP - per capita purchasing power parity - $5,600 (2001 est.)

GDP - composition by sector
agriculture: 17%
industry: 33%
services: 50% (2000 est.)

Population below poverty line 23% (1999 est.)

Household income or consumption by percentage share
lowest 10%: 4.4%
highest 10%: 25% (1995)

Distribution of family income - Gini index 35.3 (1995)

Inflation rate (consumer prices) 3% (2001 est.)

Labor force 9.4 million (2001 est.)

Labor force - by occupation government 29%, agriculture 25%, construction and public works 15%, industry 11%, other 20% (1996 est.)

Unemployment rate 34% (2001 est.)

Budget
revenues: $20.3 billion
expenditures: $18.8 billion, including capital expenditures of $5.8 billion (2001 est.)

Industries petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing

Industrial production growth rate 6% (2001 est.)

Electricity - production 23.556 billion kWh (2000)

Electricity - production by source
fossil fuel: 99.58%
hydro: 0.42%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 21.847 billion kWh (2000)

Electricity - exports 210 million kWh (2000)

Electricity - imports 150 million kWh (2000)

Agriculture - products wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle

Exports $20 billion (f.o.b., 2001 est.)

Exports - commodities petroleum, natural gas, and petroleum products 97%

Exports - partners Italy 23%, Spain 13%, US 13%, France 11%, Brazil 7%, (2000)

Imports $1 billion (f.o.b., 2001 est.)

Imports - commodities capital goods, food and beverages, consumer goods

Imports - partners France 29%, US 9%, Italy 8%, Germany 6%, Spain 5% (2000)

Debt - external $24.7 billion (2001 est.)

Economic aid - recipient $100 million (1999 est.)

Currency Algerian dinar (DZD)

Currency code DZD

Exchange rates Algerian dinars per US dollar - 77.889 (January 2002), 77.215 (2001), 75.260 (2000), 66.574 (1999), 58.739 (1998), 57.707 (1997)

Fiscal year calendar year

NOTE: The information regarding Algeria on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Algeria Economy 2002 information contained here. All suggestions for corrections of any errors about Algeria Economy 2002 should be addressed to the CIA.