Salient Features: State-directed economic system
undergoing modest market-oriented structural adjustment and decentralization.
Central government retains ownership of more than 450 state-owned
enterprises. Economy dominated by hydrocarbon sector, mainly oil,
but diversifying into natural gas and refined products. Underinvestment
in agriculture and other nonoil sectors.
Gross Domestic Product (GDP): In 1992 estimated
at US$42 billion. GDP grew at average annual rate of 6.5 percent
during 1970s and 4.5 percent during first half of 1980s, largely
as result of increasing oil revenues. Economy contracted sharply
during latter half of 1980s and early 1990s; per capita GDP declined
from US$2,752 in 1987 to US$1,570 in 1992.
Minerals: Hydrocarbon sector, mainstay of economy
and main source of exports, constituted 23 percent of GDP in 1990.
Exports include crude oil, refined petroleum products, and gas.
Nonfuel minerals include high-grade iron ore, phosphate, mercury,
Energy: Electricity supplied mainly by gas powered
plants. Overall energy consumption quadrupled between 1970s and
Industry: Manufacturing constituted 10 percent
of GDP in 1990. Investment concentrated in state-owned heavy industry,
Agriculture: Variably estimated to account for
7 to 11 percent of GDP in 1990 and employing more than 22 percent
of labor force. Arable land restricted mainly to coastal strip
in north; pastoral agriculture dominant farther south. Production
mainly grains, dominated by wheat and barley. Other main crops
include grapes, citrus fruits, vegetables, olives, tobacco, and
dates. Livestock and poultry production significant but heavily
dependent on imported feed. Local consumption heavily reliant
on food imports. Landholding, agricultural marketing, and distribution
undergoing gradual decentralization and reprivatization.
Foreign Trade: Total exports US$12.7 billion
in 1990, of which 96 percent hydrocarbons. Nonhydrocarbon exports
include wine, metals and metal products, phosphates, fruits and
vegetables, and iron ore. Total imports US$9.8 billion in 1989;
include foodstuffs, semifinished goods, industrial and consumer
External Debt: US$26 billion in 1992, mainly
held by public sector. Debt service exceeded US$7 billion in 1991.
International Monetary Fund standby agreement negotiated in May
Currency and Exchange Rate: Algerian dinar (DA);
US$1 = DA40.7 in October 1994.
Fiscal Year: Calendar year.
Data as of December 1993