(Ecofin Agency) - In 2019, Algeria will reduce its expenditures to rebalance public finances, the government indicated in a document, according to Reuters.

According to information provided by the news agency, this decision falls within the framework of the reforms initiated since 2016 by Algeria to address the fall in oil prices.

After a 9% cut in 2016 and 14% in 2017, the country increased its 2018 expenditure budget by about 25% to implement many delayed projects in key sectors.

The new budget cut (despite the rise of oil prices) should “ensure the budget’s viability and […] reduce pressures on the public treasury”.

Let’s note that Algeria expects its 2019 budget deficit to stand at 9.2% of GDP. IMF forecasts the country’s economic growth to be 2.7%.

Moutiou Adjibi Nourou