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Algeria Press Service

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24/04/2017 10:31

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WASHINGTON – The growth of Algeria’s economy remained “buoyant” in 2016, despite low global oil prices, said Monday the World Bank (WB), expecting it to slow down in 2017 due to the rebalancing of public finances.

In 2016, Algeria "posted a sustained growth at a rate of 3.8%, similar to 2015’s” 3.9%, said the World Bank in its Algeria’s Economic Outlook- April 2017 published Monday in Washington.

This solid growth is driven by “the recovery of hydrocarbon production which increased by 3.6% in 2016 compared to 0.4% in 2015," explained the Bretton Woods Institution.

This sustained growth is the fruit of a process of rebalancing of the public finances, which allowed reducing the budgetary deficit to 12.2% of GDP in 2016, against 16.2% of GDP in 2015, said the international financial institution.

 

              ==Impact of the rebalancing of the public finances ==

This rebalancing of the public finances, necessary for the national economy, should, in the medium term, lead to the slowdown of growth due to fall in the public expenses but which is expected to reduce the budgetary deficits.

"The downward revision of growth projections compared to the Fall 2016 projections is due to the announced fiscal consolidation and a moderation of hydrocarbon production growth,” said the World Bank in note on Algeria.

According to the same forecasts, the real GDP growth is expected to average 1.2% in 2017-2019.

For 2017, the World Bank expects a 1.5% growth rate which will decline to 0.6% in 2018 before recovering to 1.5% in 2019.

Thanks to the control of expenses, Algeria will be able to reduce deficit to 4.7% in 2017 then to -1% in 2019.

 

           ==Oil production will mitigate the impacts of financial rebalancing==

 The World Bank also said that “in 2017- 19, a modest 2.5% increase in hydro-carbon production resulting from the start of production in new oil wells and a positive correction in oil prices will mitigate the negative effect of fiscal and current account consolidation on the real non-oil sectors.”

The World Bank prospects are based on the hypothesis of strong increase of 27% in oil prices in 2017.

Published in ECONOMY

ALGIERS- The public-private partnership (PPP), which is a new kind of long-term contract on which Algeria counts on to carry its future infrastructure projects, allows the introduction of efficiency but it also implicates the strong increase in the capacity of the public administration said Wednesday, in Algiers, an expert of the World Bank.

“The PPP is an attractive way to introduce efficiency gains in economic infrastructures. This requires a strong increase in new skills within the public function able to carefully select, structure, evaluate and negotiate projects and also monitor them following their implementation,” said Olivier Fremond, an expert of the World Bank in a workshop on public-private partnership which brought together several officials of various sectors (transport and public works, health, energy, industry).

According to this expert’s definition, the PPP in public infrastructures is an assigning of the public service’s mission by public authorities to a private operator through a long-term contract in which the public sector has the obligation to verify that the commitments made by the private sector are effectively respected.

The remuneration of the private sector depends on its performances, the quantity and quality of the services it will offer.

 “So the PPP is a great opportunity to introduce efficiency gains but this also implicates a strong increase in the capacities of the public administration. The only good reason to choose PPP is the efficiency gains and the effectiveness caused by the participation of the private sectors,” he said.

In his paper entitled: introduction to the funding of infrastructures to PPP, Fermond said that the necessary conditions to succeed in this kind of partnership are notably, having a sound macroeconomic framework, an encouraging investment climate, a clear and stable regulatory framework.

Published in ECONOMY

WASHINGTON (United States)- Algerian diaspora's remittance of funds to their native country has reached two billion dollars in 2015, according to a study by the World Bank on the diaspora in the Middle east and North Africa (MENA), published Tuesday in Washington.

The amount accounts for 0.9% of Algeria's GDP in 2014, according to the analysis which was designed to explore the nature of engagement of the diaspora of North Africa and the Middle East in the development of their home countries.

The remittances of funds by the Algerian diaspora are, however, lower than their counterparts from other MENA countries.

Egypt is topping the list with USD19.7 billion of remittances in 2015, followed by Lebanon (USD7.2 billion), Morocco (USD6.4 billion) and Jordan (USD3.8 billion), according to the study.

The study focused on the interest of the diaspora in contributing to the globalization of their home countries through three main channels: investment, trade and skill transfers.

Three Maghreb countries, namely Algeria, Morocco and Tunisia, have a network of about 100 associations with more than 200,000 members (28 in Algeria, 26 in Morocco, 30 in Tunisia and 10 covering the whole Maghreb region).

According to the World Bank, "more than half of the identified diaspora networks are business networks or consist of students and graduates of elite schools."

"Unlike Moroccan and Tunisian networks, Algerian diaspora professional networks seem to be less organized."

The study stressed the importance of the initiative launched by Algerian high-profile researchers and executives, including Elias Zerhouni, the former director of the U.S. National Institutes of Health."

The Algerian high-profile network has launched the Algerian American Foundation in the United States to provide training and technical assistance to emerging medical and research centres in Algeria.

The World Bank mentioned the steps taken by Algeria to boost the role of the diaspora in the country's economic development.

In 2013, the ministry of Post, Information and Communication Technologies and the state secretary for National Community Abroad launched an electronic portal dedicated to national skills abroad (algeriecompetences.dz).

The WB study also cited 14 commitments the Algerian government made in 2014 to serve the Algerian community abroad.

"Key components of the program included setting up of the National Agency for the Support of Youth Employment to provide financial assistance to young emigrants who have professional ties with Algeria, opening branches of Algerian banks in countries with strong Algerian communities, such as France, and facilitating access to the public markets in Algeria," favouring know-how and financial transfers.  

 

 

Published in ECONOMY

ALGIERS- Vice President of the World Bank for the Middle East and North Africa Hafez Ghanem on Tuesday hailed Algeria's experience in the eradication of flimsy dwellings, and expressed readiness of his institution to contribute to projects aiming at improving the living environment of citizens in the province of Algiers.

"We seek to cooperate with the province of Algiers, after we have noticed that the major projects it has achieved so far, especially in the field of transport, were carried out in partnership between the public and private sectors," he said, following a presentation on the experience of the province of Algiers in the eradication of flimsy dwellings and its strategic plan.

"The World Bank is ready to build a partnership with Algeria, with which we are already cooperating through technical assistance and exchange of experience and expertise," added Hafez Ghanem after his visit, accompanied by Algiers Governor Abdelkader Zoukh, to the new town of Sidi Abdellah, the Grand Mosque of Algiers and the Bay of Algiers.

"Algeria is as a 'shareholder' in the WB," said Demba Ba, WB Resident Representative in Algeria, underlining the cooperation developed between the two sides.

In this regard, he recalled the cooperation programme set up by the WB with the Ministry of Water Resources and Environment for the development of a strategy for desert ecosystem management.

Published in REGIONS
Tuesday, 21 March 2017 17:51

Sellal receives WB delegation

ALGIERS- Prime Minister Abdelmalek Sellal has received, Tuesday in Algiers, a delegation of the World Bank, led by Hafez Ghanem, Vice President for the Middle East and North Africa, said the Prime Minister Office in a statement.

The audience was an opportunity to "assess cooperation between Algeria and this international financial institution, with the framework of the assistance and support programme for the development and diversification of national economy," said the statement.

The discussions were attended by Minister of Finance Hadji Babaammi.

Published in ALGERIA

WASHINGTON- Algeria has an immense growth and development potential, the World Bank (WB) said in a statement, noting the country's successful reduction in poverty rates over the last fifteen years.

Algeria has managed during the past 15 years to reduce the rate of poverty from 20 to 7 percent, which is a significant success, said the WB deputy chairman for the Middle East and North Africa (MENA), Hafez Ghanem, who is on a visit to Algeria.

Ghanem stressed the importance of building on such achievements to get a more productive and innovative society.

The World Bank has provided assistance to several countries in their reform programmes, including Poland, Kazakhstan and Viet Nam, he said in a statement issued by the financial institution.

The WB official expressed wish that Algeria benefits from World Bank's expertise in laying the foundations for the future sustainable development.

He added that Algeria has a huge potential and is developing a strategic vision to make full use of it.

 

 

Published in ECONOMY

WASHINGTON (U.S.A) The Vice president of the World Bank for the Middle East and North Africa Hafez Ghanem will pay a visit to Algeria, as from Sunday, to discuss the development prospects of the Algerian economy, sources of this international financial institution told APS on Friday.

For his second visit to Algeria, Ghanem will be accompanied by several officials of the WB, including Marie Francoise Marie-Nelly, Country Director for the Maghreb and Malta, Middle East and North Africa, Demba Ba, Country Manager for Algeria, and a high official of the International Finance Corporation (IFC) George Ghorra.

During this four-day visit, Ghanem will hold several meetings with the Algerian authorities, added the source.

He will also broach Algeria’s medium and long-term economic priorities and the state of cooperation between Algeria and this Bretton Woods institution.

The visit will also be an opportunity to address the ways to strengthen this cooperation, said the source.

Published in ECONOMY

WASHINGTON- Algeria has emerged as one of the renewable energy champions, among the developing countries group, according a new report of the World Bank, published Wednesday in Washington.

According to this study entitled "Regulatory Indicators for Sustainable Energy", Algeria proved to be one of the leaders in terms of sustainable energy, as it ranked among the 45 countries in the world with solid energy policies.

The report which relies on a new series of indicators said that half of these 45 world leaders are developing countries which are more and more growing as champions of renewable energy.

It mentioned the example of Algeria, South Africa and Egypt in Africa and that of China, India and Malaysia in Asia.

The 2017 edition of the report examines the policies of 111 countries in three areas, which are access to energy, energy efficiency and renewable energies.

With a total score of 69 points out of 100, Algeria obtained 100 points in the indicator of access to energy, 55 points in energy efficiency and 51 points in the development of renewable energies.

Indeed, it positioned itself in the first category of the country obtaining a score between 67 and 100 points, i.e. in the green zone above the yellow and red zones.

Published in ECONOMY

WASHINGTON- The World Bank (WB) revised upward Algeria’s growth forecast for the period between 2015 and 2016, ahead of the slowing down of the 2017 GDP due to the falling oil prices.

In its half-yearly report on the global economic prospects published Tuesday, in Washington, the World Bank raised by one point Algeria’s economic growth rate in 2015 (3.9% against 2.9% in June 2016).

For 2016, the Algerian economy’s performance was good by maintaining a sustained growth despite the drop in oil prices which reduced its exports revenues.

According to WB’s adjusted forecasts, Algeria’s GDP growth was due to be 3.6% in 2016 against 3.4% forecast in June, a growth which remains sustained thanks to the entry into production of several gas projects and the solidity of the non-hydrocarbon activity.

In the short term, the World Bank banks on a slowing down of the Algerian economic growth, similar to those of oil exporting countries of the Middle East and North Africa Region (MENA).

GDP growth is due to drop to 2.9% in 2017, 2.6% in 2018 and 2.8% in 2019, according to the source.

 

 

Published in ECONOMY

ALGIERS – Algeria has, for the first time, progressed in the World Bank’s Doing Business 2017 ranking (DB 2017), said Wednesday Minister of Industry and Mining Abdesslam Bouchouareb, in reaction to the ranking published Tuesday in Washington.

"For the first time since the launch of Doing Business report by the World Bank in 2003, Algeria made a significant progress by winning 7 places in 2017 ranking. Thus, Algeria becomes the top Maghreb reform countries in 2016," praised Bouchouareb in a communiqué of his ministry.

As such, Algeria "breaks a period of decrease, even if DB 2017 evaluation has not included all the reforms," some of which have been launched after the evaluation closing like the new Investment Bill.

"We are determined to pursue the reforms to achieve the new investment policy and relaunch the industrial development of which the promotion of the business climate is an essential element," he added.

Bouchouareb said that the improvement of business climate is a «longstanding objective" and an "ongoing collective action" we work for efficiently through the National Doing Business Committee which brings together the government and the social partners (Employers and Union).

On the ground, "we feel things are evolving in the right direction," he stressed.

Moreover, "we will deeply examine the report to identify and refine measures that could integrate our actions," underscored the minister.

The World Bank’s 2017 Doing Business indicated that Algeria has risen to 156th place with a score of 47.76 points out of 100, after holding the 163rd place in the 2016.

Published in ECONOMY

WASHINGTON-Economic growth is a "priority and a longstanding goal" set by the Government, Prime Minister Abdelmalek Sellal stress in a report on investment in Algeria released in Washington.

"Our strategy is simple; it focuses on growth as a priority and a permanent goal, and companies as a mean to achieve this goal," the Premier said in this report, released on the occasion of the annual meetings of the International Monetary Fund and the World Bank.  

Entitled "Algeria Investment Report," the report, composed of 28 pages, aims at promoting the Algerian market to attract US businessmen.

Sellal added that "all measures have been taken to encourage investment, creation of business and improve the business environment."

"For over a decade, our oil incomes are directed towards the establishment of structural programs and large basic infrastructure to make up the economic leg, from which we suffered during the terrorism era," Sellal affirmed.   

"We are preparing for post-oil economy," he said in response to a question on the new growth model launched by the Government to revive productivity following a sharp fall in oil prices.                

Economic patriotism open to foreigners

 According to the PM, the most ambitious project aims at "putting the country on the path leading to development and prosperity and successfully change some mentalities and practices" of the Algerian society.

In this regard, Sellal said that the Government's economic policy is based on economic patriotism, which does not exclude resort to foreign expertise and investment.

He stated that the new investment code enshrines the freedom of investment in Algeria and subjugates the automatic granting of benefits while reorganizing entities in charge of investment.

"We have also introduced a simplified procedure to supervise the management of industrial lands, which is now open to private investment and can be domestically controlled," he explained.

Sellal highlighted US businessmen's expertise, stressing that several cooperation fields can be exploited by the two countries including petrochemistry, energy, pharmaceutical industry and agriculture.

"We can provide US investors with several opportunities," he said. 

Published in ECONOMY
Sunday, 09 October 2016 17:00

Baba Ammi meets IMF chief in Washington

WASHINGTON (United States)- Minister of Finance Hadji Baba Ammi has taken part, in Washington, at the meeting of Arab Finance ministers with the director general of the International Monetary Fund (IMF), Christine Lagarde.

The meeting attended by the governor of the Bank of Algeria, Mohamed Loukal, has been an opportunity for exchange of views on the situation in Arab countries, marked by economic and social instability.

Earlier, the minister of Finance had participated in the annual meetings of the International Monetary Fund and World Bank and in IMF International Monetary and Financial Committee meetings.

The discussions focused on global economic trends and the need for raw material producing countries to readjust their economic policies.

 

They also stressed the importance of pursuing efforts to reduce poverty and share prosperity and mentioned the support that may be provided by the World Bank and the International Monetary Fund to the member countries to face development challenges. 

 

 

Published in ECONOMY

WASHINGTON (United States)- Minister of Finance Hadji Babaammi has met, in Washington, several official of international financial institutions on the sidelines of his participation at the annual meetings of the International Monetary Fund (IMF) and World Bank (WB).

 

Published in ECONOMY

WASHINGTON (U.S.A)- Algeria and the World Bank (WB) will hold, end of August, discussions on the prospects of economy in the wake of the weakness of oil prices said this international financial institution on Thursday.

Financial authorities will discuss, with the officials of the WB, the analysis concerning Algerian economy, published end of July in the quarterly economic information newsletter of the MENA (Middle East and North Africa) region.

The discussions, which will be held through videoconference, and to which will partake the Chief Economist of the World Bank’s MENA region will most likely take place on 29 August, according to the same source.

The conference is part of the analytical works that the World Bank carries out and shares with its member countries.

In the analysis published end of July, the World Bank underlined that the weakness in oil prices prompted Algeria to take a series of corrective measures destined to reduce expenses, increase revenue and adjust energy prices.

The same source stresses that it is an analysis in the quarterly economic information newsletter of the MENA region, and not a report dedicated to Algeria.

Published in ECONOMY

ALGIERS- Minister of Industry and Mines Abdessalem Bouchouareb received Wednesday the new resident representative of the World Bank (WB) in Algeria, Demba Ba, with whom he tackled the economic reforms to improve business climate and develop investment in the country. 

The discussions focused on relations of the ministry of Industry and Mines with the World Bank, especially in creating a business climate and providing technical assistance to some World Bank projects in Algeria, the ministerial department said in a statement.

Bouchouareb stressed the importance Algeria attaches to the presence of a representative of the World Bank in Algiers, to step up cooperation and allow this international financial institution "to have a more accurate picture of the country, notably in terms of business climate." 

The minister mentioned the differences between the assessments of the World Bank and the reality of business environment in Algeria, because of the failure to take into consideration the various major improvements achieved in Algeria, according to the statement.

Bouchouareb seized the opportunity to give the WB official an outline about Algeria's economic reforms over the past two years, and mainly those introduced by the revised Constitution. 

He shed light on the reforms in the sector of industry and mines and the new law on investment promotion, considered as a "big step" in the reform process.

 

He also presented the bill on the development of small and medium-sized companies, adopted Tuesday by the Council of Ministers.

Published in ECONOMY

ALGIERS- Minister of State, Minister of Foreign Affairs and International Cooperation, Ramtane Lamamra, received Monday in Algiers, Demba Ba, who presented cabinet letter accrediting him as the World Bank Resident Representative to Algeria, said a statement from the Foreign Ministry.

Published in ALGERIA

WASHINGTON (U.S.A)- Economic growth in Algeria is expected to pick up to 3.4% in 2016 against 2.9% in 2015 and will remain steady thanks to the strength of the sectors of gas and hydrocarbons, said the World Bank (WB) in its report on global economic outlook published Tuesday in Washington.

According to this international financial institution’s forecasts, the growth of the Algerian Gross Domestic Product (GDP) will pick up in 2016 to record a 3.4% progress against 2.9% in 2015.

The WB slightly noted its growth forecasts for Algeria in 2015, estimating the GDP’s progress at 2.9% against a forecast of 2.8% anticipated last January.

After anticipating a 3.9% growth for 2016 last January, the World Bank lowered this forecast to 3.4% but underlined that the growth will remain steady thanks to the gas projects coming online and the modest dynamism in the non-hydrocarbon sector.

Published in ECONOMY

WASHINGTON- Prime Minister Abdelmalek Sellal discussed Thursday in Washington with Vice President of the World Bank Sri Mulyani Indrawati the improvement of the business climate in Algeria.

 During the meeting, the Premier recalled to Indrawati that Algeria has made significant progress in improving the business climate it wants to be mentioned in the next Doing Business 2016 report of the World Bank, the Algerian delegation said.

Several reforms implemented by Algeria in terms of investment incentives have not been taken into account in preparing the 2015 report, while they were conducted with the assistance of WB expert teams.

"We are ready to support Algeria in improving its business climate, including law governing the private sector to create jobs and generate growth," said Mulyani Indrawati to APS after being received by the Prime Minister.

Shortly before the opening of the 4th Summit on Nuclear Security, Sellal is expected to meet Thursday with Turkish President Recep Tayyip Erdogan and Deputy Secretary of State Tony Blinken before joining the White House in the evening for a debate on nuclear safety for which are invited fifty heads of governments of states.

Published in ECONOMY

WASHINGTON (U.S.A.)- Algeria is expected to record a rise in the economic growth of 3.9% in 2016 and 4 % in 2017, said the World Bank in its report on global economic prospects published Wednesday evening in Washington.

According to the forecasts of this international financial body, the growth of Algeria’s real gross domestic product (real GDP) will pick up again in 2016 to reach a 3.9% progress against 2.8% in 2015, despite the oil price decline.

In 2017, Algeria’s economic growth is expected to further improve to reach 4%, said the WB.

For 2016 and 2017, the World Bank maintained its growth forecasts for Algeria, anticipated in June 2015, and slightly reviewed the growth upwards in 2015 by +0.2%.

Meanwhile, the unemployment rate in Algeria will remain stable, at the same level of that recorded in 2010, according to the Bretton-Woods body.

Overall, the economic growth in the Africa and the Middle East region (MENA) is expected to rise in 2016 to 5.1% boosted by the lifting of economic sanctions against Iran, leading provider of the world energy market.

Published in ECONOMY

ALGIERS- Prime Minister Abdelmalek Sellal on Monday has received the Vice President of the World Bank for Middle East and North Africa (MENA), Hafez Ghanem, who is a working visit to Algeria, said the Prime Minister Office in a statement.

During the discussions, the two sides assessed "cooperation between Algeria and the world financial institution in an international context marked by major changes," said the statement.

They also expressed their willingness to preserve and strengthen their relations, especially through partnership in various areas.

The audience was attended by Minister of Finance Abderrahmane Benkhalfa and Deputy Minister for Finance in charge of Budget and Forecasting, Hadji Baba Ammi.

Published in ALGERIA
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