Economy : Algeria to “recoup” 2020 losses as of this year

ALGIERS – The year 2021 is slated to see a gradual return of the economic activity in Algeria to levels that allow the country to "recoup" the losses incurred in 2020 and reduce the disequilibrium in State accounts, the Finance Ministry said Wednesday in a communiqué.

0
48

ALGIERS – The year 2021 is slated to see a gradual return of the economic activity in Algeria to levels that allow the country to “recoup” the losses incurred in 2020 and reduce the disequilibrium in State accounts, the Finance Ministry said Wednesday in a communiqué.

“The year 2021 is expected to know a stabilization of the country’s economy fundamentals, through a gradual return of the economic activity to levels allowing the recovery of the losses suffered in 2020 and a reduction of internal and external imbalances in the State’s accounts,” said the ministry in its document which evaluates the economic and social situation of the country during the first 5 months of 2021.

Algeria’s main macroeconomic and budgetary indicators confirm that the “economic activity is picking up steam” and that “the needs of citizens are being met in terms of income and social and health coverage, said the source.

This recovery follows the global economy rebound as the Covid 19 pandemic is under control. Positive signs may constitute favorable prospects for the economies in developed and emerging countries.

In 2021, Algeria’s economic growth is projected to stand at +4.2% while the hydrocarbon growth is expected to rise to 10.1%. The non-hydrocarbon growth is expected to reach +3.2%.

In the first 5 months of 2021, the trade balance deficit has already fallen by 68%, falling to -$1.3 billion dollars, with imports of $15.2 billion USD, exports of hydrocarbons up + 32.7% and non-hydrocarbon exports up 81.71%.

=== Tax collections up 9.5% in 4 months===

The rebound of Algeria’s economic activity is reflected by the level of tax collections which increased by 9.5% to DZD 807.65 billion in late April 2021 compared to the same period 2020 (DZD737.69 billion), said the ministry.

The credits to the economy allocated by the public banks only reached, in late March 2021, an outstanding amount of more than DZD 9 711 billion (up 67 billion DA compared to the end of December 2020). DZD4,087bn of these credits have been allocated to the private sector.

The share of investment loans represents 75% of the total loans granted by public banks, up DZD 5 billion while the operating credits recorded an increase of DZD 64 billion.

“These increases demonstrate the significant effort made by the banking sector to support the national economic sector and ensure a constant recovery,” said the finance ministry.

Moreover, average inflation in 2021 is forecast to be around 4%, in relation to “the upturn in activity and the gradual return to the normal supply of markets, in particular, food,” added the source.

With regard to the State budget, the Government, in application of the President of the Republic programme, continues to implement the policy aiming the streamlining of public expenditure and the gradual improvement of tax revenues, while preserving the support of the public authorities for vulnerable populations through social transfers, the ministry pointed out.

And to mitigate the impacts of the Covid-19 health crisis, the State has allocated budgetary allocations, as part of the 2021 fiscal year, of nearly DZD530 billion, according to the ministry’s note

LEAVE A REPLY

Please enter your comment!
Please enter your name here