The Executive Board of the International Monetary Fund (IMF) has completed Article IV consultations with Algeria.
According to the IMF, in Algeria, the economy is gradually recovering from the two shocks that hit it simultaneously in 2020. Namely: the Covid-19 pandemic and the drop in oil prices. The authorities’ rapid response helped mitigate the health and social repercussions of the crisis.
IMF administrators have found that the pandemic has had a strong impact on Algeria. They praised the swift and ambitious actions taken by the authorities to contain the human and economic costs. A gradual economic recovery is certainly at work. Indeed, “the Algerian economy should recover in 2021 and 2022”, estimates the IMF.
However, IMF administrators advocate a well-calibrated set of economic policies. This is done in order to foster macroeconomic stability and promote sustainable, resilient and inclusive growth.
In addition, the directors welcomed the authorities’ strategy to revive growth and reduce the economy’s dependence on hydrocarbons. They also welcome the orientation of the government’s new Action Plan. While supporting the priority reforms identified by this Plan.
“The recent announcements go in the right direction with regard to strengthening transparency and the institutional framework to fight corruption, improving resilience to climate change, or initiatives in favor of digital technologies, FDI and competition, etc. Strengthening the framework for combating money laundering and the financing of terrorism (AML / CFT) also remains a priority ”. This is again what emerges from the IMF press release.
