Algeria has maintained macroeconomic stability since the successful completion of its International Monetary Fund (IMF)-supported adjustment and reform programs in 1998, despite volatile oil markets and a difficult political and social environment, according to the IMF’s 2004 Article IV Consultation with the Arab state.
According to a Public Information Notice (PIN), Algeria’s gross domestic product (GDP) growth has strongly recovered from its slowdown in 2000, inflation has been generally maintained at industrial-country level and the external position has strengthened significantly, said the fund.
The government has eased the fiscal stance since 2001 with a view to fostering economic growth and generating employment. Additional fiscal impetus was generated by the increase in expenditure to finance the reconstruction needs following the devastating May 2003 earthquake.
The overall budget is expected to record an end-year surplus of over three percent of GDP, after a near balance in 2002. At the same time, the primary non-hydrocarbon deficit would surpass 32 percent of non-hydrocarbon GDP in 2003, after an already elevated 28.7 percent in the preceding year, said the IMF.
Under Article IV of the IMF's Articles of Agreement, the fund holds bilateral discussions with members on a yearly basis. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies.
At the conclusion of discussions on return to IMF headquarters, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors transmits the synopsis to the country's authorities. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
