Algeria’s economic growth falls to 2.2 percent in 2017

ALGIERS: Algeria’s economy grew by 2.2 percent in 2017, down from 3.3 percent the previous year, due to a decline in the performance of the energy sector, the central bank said in a document seen by Reuters.
It said inflation last year stood at 5.6 percent against 6.4 percent in 2016. The balance of payments deficit declined by $3 billion to $23.3 billion.
Algeria, aiming to cut spending after a fall in energy earnings, last year tightened restrictions on imports, resulting in a $1 billion reduction in their total value.
But the country’s foreign exchange reserves declined by $16.8 billion to $97.3 billion in 2017, from $114.1 billion at the end of the previous year.
OPEC member Algeria relies heavily on oil and gas, which account for 60 percent of the budget and 95 percent of total export revenue. State finances have been hit by a fall in crude oil prices since mid-2014.
The North African nation’s energy sector grew by 7.7 percent in 2016 but its performance declined in 2017, the document said, without elaborating.
Algeria aims for overall growth of 4 percent this year and expects the energy sector to grow by 6.5 percent, as it sees some oil and gas fields coming online before the end of 2018.