Algeria's economy is stable, despite fall in oil revenues, claims PM

The prime minister of Algeria said on Wednesday that his country’s economy is stable, despite the fall by more than 50 per cent of oil revenues following the collapse of international market prices two years ago. Abdelmalek Sellal made his comments to local media after a visit to Saida Province.

Algeria is a member of the Organisation of the Petroleum Exporting Countries (OPEC) with a production volume of 1.2 million barrels per day and energy sales representing 60 per cent of the total government budget. This has turned the sector into Algeria’s main political and economic indicator.

The government announced plans to reduce public spending, increase tax and freeze major infrastructure projects when the oil price started to fall.

Sellal predicted that Algeria’s growth rate will reach 3.9 per cent by 2017; it stands at 3.5 per cent this year. He noted that the government should make more effort to boost agricultural and industrial production.