BY: Hana Saada
ALGIERS– In a reaffirmation of their commitment to supporting Algeria’s economic journey, the International Monetary Fund (IMF) has embarked on a new consultation mission within the North African nation. This mission follows the IMF’s positive reports regarding the country’s economic development over the past two years. The mission’s objective is to assess and provide recommendations on the progress of the economic and financial reforms initiated by Algerian authorities.
It is important to emphasize that this mission operates in a purely consultative capacity, in accordance with Article IV of the IMF’ statutes. Algeria, a full member of this esteemed international financial institution, remains unburdened by external debt for several years, enjoying a position of autonomy in its economic decision-making.
Like the 189 other member nations, Algeria welcomes periodic visits from teams of IMF experts. These experts engage with local economic stakeholders and authorities, subsequently providing an annual update on Algeria’s economic, financial, and budgetary developments.
A Promising Growth Forecast
The Minister of Finance, Laaziz Faïd, presided over the commencement of the IMF’s mission in Algeria last Thursday. The mission, led by Geiregat Chris, the representative of the Middle East and Central Asia department, is set to evaluate the nation’s economic progress.
During the opening meeting at the Ministry of Finance headquarters, Minister Faïd underscored the importance of the ongoing reforms in Algeria. He emphasized that despite the volatile international context, the Algerian government’s economic policies in recent years have been effective in diversifying the economy, with a particular focus on non-hydrocarbon exports. This strategy aims to set Algeria on the path toward a resilient, inclusive, and united economic development.
Minister Faïd explained that the government’s objectives include boosting economic growth, regulating foreign trade, stimulating non-hydrocarbon exports, and rationalizing imports without compromising national production. Additionally, the government aims to continue modernizing all aspects of state finances, public administration, and management methods. This includes accelerating digital transformation and enhancing the national statistics system.
As the current financial year progresses, Algeria anticipates economic growth of +5.3%. The nation also expects to witness a significant increase in exports, an improvement in official foreign exchange reserves, a strengthening of the positive trade balance, and increased budget revenue.
Satisfaction and Commitment to Support
The head of the IMF mission in Algeria reiterated the institution’s commitment to supporting the nation’s reform process through technical assistance and advisory actions. These actions are integral to establishing social and economic stability, providing the necessary groundwork for investments, accelerating growth, and ensuring transparency.
Recalling the IMF’s latest report on Algeria, published last February, it is worth noting that the institution expressed overall satisfaction with Algeria’s economic trajectory. The report anticipated favorable prospects in the short, medium, and long term, highlighting the significance of various reforms, including the new law on investment, revisions to currency and credit ordinances, implementation of finance laws, and the introduction of mechanisms for self-entrepreneurship and renewable energies.
In its recommendations, the IMF underscored the need for an acceleration of structural reforms to transition Algeria towards a more diversified, resilient, and job-rich growth model. Strengthening governance frameworks was identified as a key step in this transformative journey.
As Algeria continues to stride forward on its path of economic reform, the support and collaboration with the IMF reinforce the nation’s commitment to sustainable and inclusive growth. This mission marks another step in the positive trajectory of Algeria’s economic development.
