WASHINGTON – The International Monetary Fund (IMF) has heightened its forecasts on 2016 Algeria growth, but expected a slowdown in 2017, it said in its World Economic Outlook 2017 published Tuesday in Washington.
Indeed, the IMF said that the growth of Algeria real GDP stood in 2016 around 4.2% against 3.6% in its last January’s forecasts. The World Bank has predicted Monday a sustained growth at a rate of 3.6%.
However, the Fund decreased its forecasts for 2017, predicting a growth rate of 1.4% against the 2.9% rate expected in January.
The downtrend will be maintained in 2018 at 0.6%, according to the same forecasts.
The World Bank has explained Monday that the downward revision of growth projections compared to the Fall 2016 projections was due to the announced fiscal consolidation and a moderation of hydrocarbon production growth.
Moreover, the IMF raised inflation forecasts to 6.4% in 2016 against 5.9% previously and, expected a 4.8% rate in 2017 and 4.3% in 2018.
The Fund also predicts a rise of Algeria’s unemployment rate to 11.7% in 2017 against 10.5% in 2016. This rate is forecasted to increase to 13.2% in 2018.
Before the IMF detailed report on the country’s economic situation in May, the Fund’s mission which visited Algeria last March outlined its view on how to surmount the oil shock.
While welcoming the resilience of the Algerian economy, the IMF recommended a "gradual recovery" of the Algerian economy which protects the social gains.