Gross National Product (GNP): $51bn

Exchange rates against the US$ over the last year: 78.38 Algerian dinars (80.04)

SCORE CARD

World GNP ranking: 47th GNP per capita: $1650 Balance of payments: $8.9bn Inflation: 1.4% Unemployment: 30%

Strengths

Oil and gas. Recent collaboration with Western oil companies should see improvements in productivity. Natural gas is supplied to Europe, with plans in hand for the construction of a third undersea pipeline.

Weaknesses

Political turmoil, leading to exodus of European and other important expatriate workers. Cost of earthquake reconstruction. Lack of skilled labor coupled with high unemployment. Limited agriculture. Shortages of basic foodstuffs. Thriving black market.

Profile

Under the pro-Soviet National Liberation Front, centralized socialist planning dominated the Algerian economy. In the late 1980s, the economic collapse of the Soviet Union led to a change in policy, and Algeria began moving toward a market economy. These reforms were frozen following the military takeover in 1992, though many have since been resumed under pressure from the IMF and the World Bank. The majority of the economy's most productive sectors remain under state control, though private investment is encouraged in the oil industry and, since early 2001, in telecommunications. A number of Western oil companies have signed exploration contracts with Algeria since it has accepted more competitive production-sharing agreements. Investment levels are likely to remain small, however, as long as the political situation is unstable. The government pledged $1.8 billion in 2003 for post-earthquake reconstruction.

EXPORTS

IMPORTS

ECONOMIC PERFORMANCE INDICATOR

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004