Overview: The exploitation of oil and natural gas products forms the backbone of the economy. Algeria depends on hydrocarbons for nearly all of its export receipts, about 30% of government revenues, and nearly 25% of GDP. In 1973-74 the sharp increase in oil prices led to a booming economy that helped to finance an ambitious program of industrialization. Plunging oil and gas prices, combined with the mismanagement of Algeria's highly centralized economy, have brought the nation to its most serious social and economic crisis since independence. The government has promised far-reaching reforms, including the privatization of industry.

GDP: $59.0 billion, per capita $2,645; real growth rate 2% (1986)

Inflation rate (consumer prices): 11% (1988 est.)

Unemployment rate: 19% (1988)

Budget: revenues $20.6 billion; expenditures $23.1 billion, including capital expenditures of $9.6 billion (1987 est.)

Exports: $8.1 billion (f.o.b., 1988); @m5commodities--petroleum and natural gas 98%; @m5partners--Netherlands, Czechoslovakia, Romania, Italy, France, US

Imports: $6.1 billion (f.o.b., 1988); @m5commodities--capital goods 35%, consumer goods 36%, food 20%; @m5partners--France 25%, Italy 8%, FRG 8%, US 6-7%

External debt: $32.1 billion (December 1988)

Industrial production: growth rate 5.4% (1986)

Electricity: 4,196,000 kW capacity; 13,685 million kWh produced, 570 kWh per capita (1988)

Industries: petroleum, light industries, natural gas, mining, electrical, petrochemical, food processing

Agriculture: accounts for 8% of GDP and employs 24% of labor force; net importer of food--grain, vegetable oil, and sugar; farm production includes wheat, barley, oats, grapes, olives, citrus, fruits, sheep, and cattle

Aid: NA

Currency: Algerian dinar (plural--dinars); 1 Algerian dinar (DA) = 100 centimes

Exchange rates: Algerian dinars (DA) per US$1--6.8537 (January 1989), 5.9148 (1988), 4.8497 (1987), 4.7023 (1986), 5.0278 (1985)

Fiscal year: calendar year

NOTE: The information regarding Algeria on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Algeria Economy 1989 information contained here. All suggestions for corrections of any errors about Algeria Economy 1989 should be addressed to the CIA.