S\u00e3o Paulo \u2013 Inflation under control, Gross Domestic Product (GDP) growth of around 2.5% in 2011, increased foreign exchange reserves and declining unemployment are some of the good results found by a delegation of the International Monetary Fund (IMF) in Algeria, according to a statement issued this Friday (27th).<\/p>\n
The Fund\u2019s mission underscored, however, that the country must work harder to diversify its revenues and reduce dependence on oil exports, as well as create conditions for jobs to be created in the private sector, and to include youths and women in the labour market.<\/p>\n
The Fund estimates that inflation stood at 4% in 2011, and hydrocarbon export revenues grew by around 30%. The country\u2019s foreign exchange reserves stood at US$ 178 billion as of August 2011, after having grown by US$ 16 billion since late 2010.<\/p>\n
\u201cIn 2011, growth is estimated to have remained solid and higher oil prices are strengthening Algeria\u2019s external balance and boosting fiscal revenues. The ripple effects of the Public Investment Program (PIP) are expected to maintain non-hydrocarbon growth at about 5%, and to bring overall GDP growth to about 2.5%,\u201d the study claims.<\/p>\n
According to the survey, macroeconomic conditions should remain stable in the short term, but in the medium term financial stability should become more dependent on oil price fluctuations. The country\u2019s growth should be driven by the public investment and national hydrocarbon companies\u2019 investment programs. Furthermore, the IMF warns that should the oil barrel price drop lower than US$ 100 for a prolonged period, the country will be forced to curb public investment and withstand high unemployment rates. <\/p>\n
\u201cImportant challenges persist, including the need for diversification of the economy, improving the business climate, reducing unemployment, as well as curtailing medium-term vulnerabilities. With public investment expected to play a less dynamic role in the economy, the private sector will need to become a stronger engine for growth and employment creation.\u201d<\/p>\n
Though on a down trend, unemployment is still high. In 2010, the rate was lower than 10%. The situation is worse among women and youths. \u201cTo make a significant dent in unemployment, a more ambitious structural reform agenda should be implemented,\u201d the report claims. <\/p>\n
*Translated by Gabriel Pomerancblum<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
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