(Ecofin Agency) - While it initially forecasted Algeria’s economic growth at 0.2% for the current year, the World Bank now estimates it to be 1.9%. From an initial forecast of 0.8%, growth for 2021 was also revised upward to 2.2%.
In the related report issued on January 8, 2020, the institution says the good news is spurred by a recovery in investment and a reduction in political uncertainty, in addition to the fiscal adjustment favored by the expansionary policy advocated to boost economic growth in a context of declining oil revenues.
However, despite the expected acceleration in growth, the Algerian economy faces many challenges. World Bank encourages authorities to strengthen resilience to the volatility of hydrocarbon prices, both by mitigating the impact of this volatility on the budget and diversifying sources of growth and also through the implementation of ambitious reforms.