Algeria’s economic performance in 2022 demonstrated significant resilience and growth amidst global geopolitical turbulence, according to the annual report released by the Bank of Algeria. The country recorded a 3.2% GDP growth, propelled mainly by non-hydrocarbon sectors, marking a recovery from the COVID-19 pandemic downturn. This positive trajectory was highlighted by improved macro-financial indicators and a robust trade balance, particularly in non-hydrocarbon exports, contributing to an increase in foreign exchange reserves and a notable reduction in external debt.Algeria’s Economy 2022
However, the report underscored ongoing inflationary pressures, particularly from imports, as a primary short to medium-term challenge. The non-hydrocarbon sectors notably outperformed, with the agricultural sector growing by 5.8% and the industrial sector maintaining a stable growth rate of 5.2% in 2022. The service sector, both marketed and non-marketed, also showed significant growth.
Reflecting on the overall economic activity, the report noted a positive shift in Algeria’s Gross Domestic Product (GDP), reaching 27.688,8 billion DZD, a substantial recovery from the 5.1% decline experienced in 2020 due to the pandemic. The hydrocarbon sector, however, witnessed a slight growth deceleration.
In terms of monetary policy, the Bank of Algeria facilitated a gradual return to normalcy after lifting exceptional precautionary measures adopted during the COVID-19 crisis. The bank continued to support the financing of the economy, maintaining the mandatory reserve ratio at 2% and the interest rate on main refinancing operations at 3% in 2022. This approach was complemented by a special pre-paid refinancing program, further stabilizing the monetary situation.
The report also highlighted the strong performance of Algeria’s external sector in 2022, with the balance of payments showing a surplus of $18.47 billion, a significant improvement from the previous year’s deficit. This was aided by an increase in foreign currency reserves and a decrease in external debt.
In conclusion, Algeria’s economy in 2022 demonstrated robust growth and resilience, supported by sound monetary policies and a focus on diversifying beyond the hydrocarbon sector. The Bank of Algeria’s report underscores the country’s economic stability and potential for continued growth. Algeria’s Economy 2022
