Algeria-With a 6.1% Growth Rate: The Resurgence of Industry Evident in Compelling Figures
BY: Hana Saada
ALGIERS, August 31, 2023- In a resounding testament to the success of revitalization efforts undertaken in the industrial sector, the latest official data released by the Ministry of Finance underscores a robust upswing in the trajectory of value-added growth and enhanced GDP contribution during the first quarter of this year. Approximately eighteen months after a series of strategic measures were implemented to reinvigorate the industrial landscape, the sector’s resurgence is undeniable, exemplified by a remarkable 6.1% expansion in the value added during the initial quarter of 2023, surging ahead of the 4.2% growth recorded during the corresponding period in 2022.
The surge in value added, a pivotal metric for gauging wealth generation, resonated notably in key domains. Notably, the building materials sector registered a noteworthy 5.6% growth rate in value added, markedly surpassing the modest 1.6% reported in the same interval last year. However, the true star of the show was the ISMME sector – encompassing steel, metal, mechanical, and electrical industries – which exhibited stellar performance, achieving a remarkable 7.5% growth rate during the first quarter of the current year, in stark contrast to the bleak -6% figure from the corresponding period in 2022.
An even more striking narrative unfolds when examining the miscellaneous industry sector, which was grappling in the doldrums during the initial quarter of 2022. This sector made a resounding comeback, experiencing a phenomenal surge in value-added growth, catapulting from a concerning -0.3% to an astonishing 21% during the same period in 2023.
Turning to the contribution of the industrial sector to the national GDP, official statistics provide an in-depth breakdown of each sector’s involvement, revealing a commendable escalation in their participation rates. Collectively, these sectors contributed a cumulative total of 358.5 billion dinars during the first quarter of 2023, marking a significant uptick from the 322.9 billion dinars reported during the equivalent period the prior year.
At the pinnacle of this contribution hierarchy stands the agri-food industry, leading the charge with an impressive 143.9 billion dinars, closely trailed by the ISMME sector contributing 34 billion dinars. A seismic shift in this landscape is anticipated in the coming months, as ongoing expansion endeavors and the establishment of new production units scheduled for operational debut in 2023 are poised to exert substantial influence.
Propelled by a series of strategic measures, notably the allocation of industrial land and fiscal incentives granted under the ambit of the new investment law, the prospects for the industry sector appear increasingly promising. These interventions aim to alleviate administrative obstacles to investment, leading to the reactivation of numerous projects that lay dormant for years within the annals of the Ministry of Industry.
In essence, the indicators collectively paint a vivid picture of a burgeoning future for the industry sector, positioning it as a primary catalyst for the nation’s economic development. The sector’s rejuvenation takes on heightened significance as it emerges as a linchpin for bolstering non-hydrocarbon exports, thereby fostering a more diversified and resilient economic landscape.
As the industrial sector continues to gather momentum, underpinned by steadfast policies and newfound dynamism, it serves as a beacon of progress, promising to drive forth the country’s economic evolution and ensuring a brighter, more industrious future for all.
