The IMF completes its mission in Algeria, facing a difficult situation
Algeria is bearing the brunt of the consequences of the fall in the price of hydrocarbons.
Ali DJENIDI / Gamma-Rapho via Getty Images
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The International Monetary Fund has just completed a two-week mission to Algeria.
For the year 2020, the IMF forecasts for Algeria a recession of 5.2% and a budget deficit among the highest in the region.
The objective was therefore to "discuss the perspectives and priorities for Algeria".
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The International Monetary Fund regularly carries out missions, and the one that ended this week in Algeria is therefore part of the usual visits.
But it took place in a particular economic context, and difficult for Algiers.
First, Algeria is suffering the full brunt of the consequences of the fall in hydrocarbon prices.
All the more so as more than 90% of its external revenues are provided by oil revenues.
Then, the coronavirus pandemic has significant repercussions on national economies across the world and Algeria is no exception in this area.
Last July, the authorities estimated the losses of public companies linked to the health crisis at nearly one billion euros.
During their meeting, the IMF and Finance Minister Aymen Benabderrahmane therefore discussed the instruments envisaged to contain the budget deficit, stimulate growth and promote diversification of the economy.
A few months ago, President Abdelmadjid Tebboune clearly ruled out recourse to external financing, in the name of national sovereignty.
This appeal is still not relevant.
But according to economist Mohand Touazi, the country should be forced to change its mind within two years, because foreign exchange reserves are running out.
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Algeria
IMF
Economy Africa