APS : Thursday, 14 June 2018
WASHINGTON- Algeria still has opportunities to get rid of its dependency on oil and establish a diversified economy thanks to an economic policy mix combining budget adjustment and growth,
said Wednesday the International Monetary Fund (IMF).
In its report on the assessment of the Algerian economy, established under the article IV, the Fund said that the authorities still have opportunities to reach the double objective of macro-economic stabilization and promotion of sustainable growth.
The recovery of oil prices, a relatively low public debt, insignificant external debt and plentiful exchange reserves are factors that allow Algeria to boost its growth and gradually strengthen its public finances.
But this requires, according to the Fund, to resort to a large range of funding options, notably the issuing of public debt securities at the market rate, public-private partnerships, sale of assets and external loans to finance well-selected investment projects.
The Fund also broached an alternative scenario for the economic recovery in Algeria which should gradually reduce deficit and bring the public debt to less than 40% of GDP in the medium term.