BY: Hana Saada
ALGIERS– Long considered a stumbling block to the country’s economic development, the public economic sector is now making a resounding comeback, poised to embark on a journey of substantial resurgence. A recent report by the national statistics office sheds light on the remarkable evolution of production in the public economic sector during the first quarter of 2023, indicating a significant increase of 5.6% compared to the same period in the previous year. This resurgence, underpinned by a decline of only 0.4% in the preceding year, has been driven by notable activity in energy, mining, ISMMEE (Iron, Steel, Metal, Mechanical, and Electronics), the chemical industry, and the food sector.
Energy Sector Charges Ahead
The energy sector, a cornerstone of the public industrial landscape, continued its upward trajectory during the first quarter of 2023, registering a robust growth rate of 5.6%. This remarkable performance signals a resurgence in the sector’s production capabilities, setting the stage for a promising year ahead.
Mining Sector Bounces Back Strongly
The mining sector, having faced setbacks in the previous two quarters with negative growth rates of -0.5% and -3.4% respectively, rebounded vigorously during the first quarter of 2023 with a striking positive variation of 12.3%. This resurgence suggests renewed optimism in the mining industry’s ability to contribute significantly to the country’s economic growth.
ISMMEE Industry Breaks the Cycle
The ISMMEE industry, encompassing Iron, Steel, Metal, Mechanical, and Electronics, posted a substantial increase in production, marking a turnaround with growth exceeding 5.1%. This reversal is particularly noteworthy as it ends a succession of declines experienced since the third quarter of 2021.
Delving into specifics, the ONS document highlights significant increases in key branches of the sector, such as the manufacture of intermediate metal, mechanical, and electrical goods (+8.5%), the manufacture of mechanical equipment (+51.9%), cast iron and steel transformation (+28.4%), and the manufacture of metal consumer goods (+24.1%). These positive shifts starkly contrast with the significant declines observed during the same period in the previous year.
Mixed Fortunes in Other Sectors
While numerous sectors experienced positive growth, others struggled to boost production. Notably, the manufacture of “metallic equipment” goods decreased by a substantial -48.9%, while the manufacture of consumer goods and electrical equipment registered declines of -88.0% and -5.9% respectively.
In a parallel transformation, the chemical industry within the sector witnessed a remarkable revival, with production increasing by an impressive 11.0%.
The food industry recorded a commendable growth rate of +3.7%, while leather industries surged ahead with an impressive growth of +11.2%, and wood industries witnessed an astonishing increase of +38.6%. In stark contrast, the textile sector continued its decline, marking a negative variation for the fourth consecutive quarter, with a -8.6% change. Furthermore, construction materials only saw a slight decline of -0.4%, significantly improved from the -10.3% recorded in the same period the previous year.
The resurgence of the public economic sector, evident in the remarkable growth rates across various industries, paints a promising picture for the country’s economic recovery. While challenges persist, the sector’s newfound momentum serves as a beacon of hope, highlighting the potential for sustained growth and development in the years to come.
