SUMMARY
Algeria faces an era of economic and political stagnation and concerns over its scal management as it embarks on consolidation under an ageing leader.
Economic risk (MEDIUM): The economy is likely to endure a slowdown as the government reverts to scal consolidation.
Political risk (HIGH): President Abdelaziz Boute ika’s age and ill health have raised concerns over the succession process. He must decide whether to stand in the April 2019 elections but there are few obvi- ous successors.
Financial risk (LOW): With its closed nancial system Algeria is largely immune to global volatility. Falling oil prices increased risks of nancial instability so a rebound has eased pressure.
Commercial risk (MEDIUM): The government has worked with the World Bank on business law reforms that could raise Algeria’s poor ranking in the Bank’s Doing Business Report and boost lending.