Algeria faces an era of economic and political stagnation and concerns over its fiscal management as it embarks on consolidation under an ageing leader.
Economic risk (MEDIUM): The economy is likely to endure a rollercoaster ride as the government uses mon- etary financing to allow continued deficits in the short term.
Political risk (HIGH): President Abdelaziz Bouteflika’s age and ill health have raised concerns over the succession process. The country’s worst aviation disaster that killed 257 has shaken the country.
Financial risk (LOW): With its closed financial system Algeria is largely immune to global volatility. Falling oil prices increased risks of financial 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.