Algeria Economic Structure
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The Algerian economic structure is largely state-controlled. The government exercises its control over pricing policies, investment efforts and infrastructure building.
Algeria’s economy was liberalized after the 1990s, however, in 2008, strict government control was once again imposed across all sectors of the economy.
The Algerian economic structure is largely state-controlled. The government exercises its control over pricing policies, investment efforts and infrastructure building.
Algeria’s economy was liberalized after the 1990s, however, in 2008, strict government control was once again imposed across all sectors of the economy.
Table of Contents
Algeria Economic Geography
Algeria is located in Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia. It has a mostly high plateau and desert, mountainous and discontinuous coastal plain terrain and arid to semiarid climate. Tunisia’s natural resources include petroleum, natural gas, iron ore, phosphates, uranium, lead and zinc.
Algeria Population & Labor Force
Algeria’s population in 2010 was 35.502 million with 25.4 percent of the population aged 0-14 years, 69.5 percent aged 15-64 years and 5.1 percent aged 65 years and over.
Industry Sectors
The main industry sectors in Algeria are agriculture, fishing, minerals, finance and tourism. Algeria’s unemployment rate in 2010 was 10.034 percent, down from 12.4 percent in 2009; with 14 percent of the labor force employed in agriculture, 13.4 percent in industry, 10 percent in construction and public works, 14.6 percent in trade, 32 percent in government 32 percent and 16 percent in other sectors.
Algeria Economic Structure
Traditionally, the Algerian economic structure was highly focused on agriculture. After independence in 1962, the agriculture sector became the main focus of its economy. With the modernization spree across the world, both industrial and service sectors developed in the country during the 1990s.
Since the mining industry began to flourish, hydrocarbons became the main foreign currency earner for the Algerian economy. Hydrocarbons account for approximately 60 percent of the budget revenues, 95 percent of the exports and 30 percent of the annual GDP.
Almost 14 percent of the work force is employed in agriculture, which accounts for 11 percent of the GDP. The country’s industrial sector employs more than 13 percent of the labor force and contributes 37 percent to the GDP. However, the service sector is the largest contributor to the GDP with 52 percent share. It employs the remaining 62 percent of the labor force in government services, trade and public works.
Algeria Business Environment
The Algerian government has placed strict rules for private and foreign investment. The oil sector, in particular, is closed for private investment. However, the government is seeking finance from private investors for building infrastructure.
The 2010 Algeria budget places huge emphasis on defense, education and its health sectors. The overall budget spending is set to increase by 9.4 percent. The government is embarking on a developmental plan (2010-14) to diversify its industrial sectors and reduce unemployment in the country. An annual sum of US $150 billion has been allocated for this plan.
