|
Algeria
Balance of Payments
The surpluses of the balance of payments in the 1970s resulted
from high levels of hydrocarbon exports, considerable foreign
borrowing by the government, and healthy remittances by Algerian
workers abroad. The surplus slipped into deficit in the early
1980s, however, as the government decided to ease import restrictions,
suspend foreign borrowing temporarily, and repay its external
debt more rapidly. The 1986 drop in the world oil price decreased
revenues from hydrocarbon sales, while imports of agricultural
products were increasing in response to growing domestic demand;
the combination of factors further worsened the balance of payments.
Algeria's balance of payments began to improve in 1988, largely
because of an unexpected rise in oil prices (see
table 6, Appendix). However, the price of, and demand for,
imports continued to grow, and the government's interest payments
on its foreign debt rose from US$1.5 billion in 1988 to nearly
US$2 billion in 1989.
Data as of December 1993
|
