Algeria faces economic slowdown as protests mount
The economy slowed into the third quarter of 2018, posting growth of 0.8% down from 1.1% in the second quarter. Algeria’s government expects the economy to grow by 2.6% in 2019, down from the 4% it has forecast for 2018 due to lower spending, according to the 2019 Budget that was signed into law in January. However, the outlook is ahead of forecasts from the International Mon- etary Fund. The October 2018 forecasts by the IMF indicate the economy will grow by just 2.4% in 2018, rather than the 3.0% envisaged six months earlier. IMF still sees the economy picking up to 2.7% in 2019 but then slowing to 1.8% and 1.1% in 2020 and 2021 respectively. The breakdown of the third quarter 2019 gures for growth show strong contributions by non-oil activities albeit at a slower pace. The hydrocarbon sector contracted by 9.3% while the non-oil sector expanded by 3.3%, the same as in the second quarter. Within that, transportation & communications grew 4.9%, with 7.2% growth in agriculture, 8.2% in nancial services, 5.3% in real estate, and 7.3% in business services. The outlook is further dimmed by the spread of protests against President Boute ika’s decision to run for a fth term.