Algeria adopts a very good policy by financing the development projects

Algeria is adopting a “very good” economic policy by continuing to finance the development projects despite the crisis which has shaken the global economy, indicated in Algiers the deputy director of the Middle East and Asia department of the IMF, Amor Tahari. “It is excellent that countries like Algeria are continuing to finance the development projects and lay down the foundations for sustainable growth and promote the diversity of the economy”, emphasised Mr Tahari. What is important, in his opinion, is the “quality of the expenditure rather than the level of expenditure, and Algeria should continue to focus its expenditure on reinforcing the production capacities, improving the business climate and increasing the resistance of its financial system”, recommended the IMF representative. In his opinion, the situation in North Africa and in the Middle East is “overall, encouraging”, and Algeria will record an economic growth rate of around 2.1% in 2009 and 3.9% in 2010, according to the IMF forecasts compared to a rate of 1.6% in the developed countries. The other remarkable point revealed by Mr Tahari is inflation will, in 2009 and 2010, remain at a low level in the countries of North Africa below 4%, which represents the highest rate of the MENA region which groups together the Middle East and North Africa. However, the major challenge of any region remains, according to the IMF, the reduction of unemployment.

“Algeria has made significant progress in this domain, but its unemployment rate is still high and it would be difficult, as for other countries of the region, to reduce this rate further with 2.1% growth”, revealed Mr. Tahari. According to IMF figures, it is essential to create 300,000 to 400,000 jobs/year in Algeria to keep unemployment at its 2008 level, “hence the importance of focusing on public expenditure and promoting job creating projects”. On this subject, he particularly recommended greater contribution from the private sector and an integration of North African economies. In his opinion, North African integration is one of the responses to the economic crisis and in all regions of the world countries are getting together economically to resist further the harmful effects of the recession.

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