{"id":57354,"date":"2017-06-03T07:00:00","date_gmt":"2017-06-03T09:00:00","guid":{"rendered":"https:\/\/escaesco.com.br\/lab\/anba\/imf-praises-algerias-actions-in-face-of-low-oil-prices\/"},"modified":"2019-06-30T12:47:06","modified_gmt":"2019-06-30T15:47:06","slug":"imf-praises-algerias-actions-in-face-of-low-oil-prices","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/imf-praises-algerias-actions-in-face-of-low-oil-prices\/","title":{"rendered":"IMF praises Algeria\u2019s actions in face of low oil prices"},"content":{"rendered":"

Washington – The International Monetary Fund (IMF) praised the efforts taken by Algeria to adapt to oil’s low prices, highlighting the measures taken to balance the public finances and improve the business environment, according to information made available this Friday (2) by news agency Algérie Presse Service (APS)<\/em>. <\/p>\n

In a yearly report on the country’s economy, the Fund pointed out the resiliency of the Algerian economy, despite the significant challenges brought by the commodity’s low prices. Oil and natural gas are by far the main products exported by Algeria.<\/p>\n

The IMF states that the country grew 3.5% last year. However, for 2017, the forecast is for a growth of 1.3%. In 2018, the Algerian Gross Domestic Product (GDP) should expand 0.7% according to the Fund. <\/p>\n

Last year, non-oil sectors of the economy expanded by 2.9%. The performance was in part hampered by spending cuts. The inflation rate stood at 6.4% against 4.8% in 2015. In February of this year, the year-over-year inflation rate reached 7.7%. The unemployment rate was 10.5% in September of 2016, according to APS.<\/p>\n

According to the IMF’s report, the Algerian external debt remains very low and should account to 2.5% of the GDP this year, rising to 2.7% in the next. The country should register a fiscal deficit of 3% in 2017, against 14% in 2016. <\/p>\n

To improve growth potential, the Fund underscores the importance of implementing a balanced combination of economic policy measures and ambitious structural reforms to ensure the viability of public finances, reduce the external imbalances and diminish the dependence on hydrocarbons (oil and gas).<\/p>\n

APS<\/em> reported that the IMF lauded the determination of authorities in seeking out the sustained streamlining of government finances over the medium term, and declared its support to the government’s moves towards a narrower the fiscal deficit.<\/p>\n

According to the news agency, these actions are intended to drive up non-oil revenue, control current spending, cutting subsidies while not jeopardizing the poorest, increasing the efficiency of public investments and cutting costs.<\/p>\n

The Fund recommends a wide range of options for financing the economy to offset slumping oil revenue, such as relying prudently on external debt, selling public assets and opting for a more flexible exchange rate.<\/p>\n

To the IMF, such measures can create fiscal leeway for a more gradual adjustment, one that is more conducive to growth at higher-than-current rates.<\/p>\n

The organization insists that reforms are paramount to diversifying Algeria’s economy. The Fund lauded measures put in place to improve the business environment and ongoing work towards a long-term strategy that could change the country’s growth model.<\/p>\n

The IMF also claims that Algeria’s net foreign assets remain at comfortable levels, whereas a more flexible exchange rate regime, combined with streamlined public finances and the reforms would help reduce external imbalances and drive private sector growth. The country’s gross reserves were enough for 22.5 months’ worth of imports in 2016, but are expected to drop to 19.5 months this year.<\/p>\n

The Fund also praised the Central Bank’s addition of open-market operations for managing liquidity and advises on eliminating rediscount operations, so as to encourage banks to manage their liquidity more efficiently.<\/p>\n

In the face of inflation pressure, the IMF suggests for Algerian authorities to be ready to raise the benchmark interest rate. The banking industry is capitalized and profitable, the organization adds, remarking that financial sector policies must be continuously strengthened and that macroprudential policies must be made broader.<\/p>\n

 *Translated by Sérgio Kakitani & Gabriel Pomerancblum<\/strong><\/p>\n

APS Photo<\/div>\n","protected":false},"excerpt":{"rendered":"

The Fund\u2019s report highlights the measures taken to balance the government\u2019s finances and improve the business environment in the country.<\/p>\n","protected":false},"author":2316,"featured_media":191775,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-57354","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"wps_subtitle":"The Fund\u2019s report highlights the measures taken to balance the government\u2019s finances and improve the business environment in the country.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/57354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2316"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=57354"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/57354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/191775"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=57354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=57354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=57354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}