Algeria’s Economic Growth Declines to 2.2% in 2017

Algeria’s economic growth dropped to 2.2% in 2017, down from 3.3% in 2016, due to a decline in the performance of the energy sector, the central bank said.

The same source noted that inflation dropped to 5.6% instead of 6.4 in 2016, while the balance of payment was reduced by $3 billion to stand at $23.3 billion.

In a bid to cut spending, Algeria imposed import restrictions resulting in a $1 billion reduction of total import value.

The country’s foreign exchange reserves declined by $16.8 billion to $97.3 billion in 2017, from $114.1 billion at the end of the previous year.

Algeria’s reserves are expected to drop to $85 billion at best by the end of 2018 down from $194 billion in 2014.

The North African nation’s energy sector grew by 7.7 percent in 2016 but its performance declined in 2017, the document said, without elaborating.