IMF forecasts increase of Algeria revenues, decline in budget deficit from 2017

APS : Thursday, 14 April 2016
WASHINGTON – Algeria’s revenues which declined due to falling oil prices should recover in 2017
and progressively increase until 2021, according to the latest forecasts of the International Monetary Fund (IMF), published Wednesday in Washington.
For 2017, Algeria revenues are expected to increase to make up 27.2% of GDP against 26.1% of DGP in 2016 (29,1% in 2015) , according to the IMF forecasts included in its “Fiscal Monitor” report which examines the management of the budgetary policies in the world.
The State overall incomes declined in 2014 due to the fall of oil prices.
The upward trend which will start in 2017 will continue to 2021, to reach 29.3% of GDP in 2021 but it remains far from the rates hit between 2008 and 2012 when oil prices reached $100.
However, the IMF has not mentioned the factors which encourage this recovery.
The deficit in the overall balance of the budget which doubled in 2015 to -15.3% of GDP against -7.3% of GDP in 2014, will gradually decrease to 14.6% of GDP in 2016 and 11.6 % of GDP in 2017
These rates will continue to fall during several years to reach -5% of GDP in 2021.
2017 will mark the end of the budget expenses which is planned to constitute 38.8% of GDP against 40.6% in 2016.
The volume of Algeria expenses will decrease to reach 34.3% of GDP in 2021, said the IMF.
In this report, published just before the Spring meetings, the IMF urged the leaders of the member countries to apply the budgetary policies so face the difficult economic conjuncture, accompany growth and reduce the weaknesses factors.

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