Revised Investment Bill to help Algeria attract more FDI, says IMF
APS : Wednesday, 19 October 2016
WASHINGTON- The revision of Investment Bill will help Algeria to attract an important flow of Foreign Direct Investment, forecast the International Monetary Fund (IMF).
In its report on the prospects of growth for the region of Middle-East, North Africa, Afghanistan and Pakistan (Moanap), the Fund said that the countries like Algeria, Saudi Arabia or Qatar which have modernized their Investment and Labour Bills are set to attract more FDIs.
Like the oil countries, Algeria is expected to experience FDI jump after a slowdown in recent years due to administrative streamlining and better quality of institutions that would attract more foreign investments, notes the Fund.
The IMF said that those actions have been taken by some oil producing countries to diversify their economy and develop their private sector, stressing that reducing independence on revenue from raw materials takes time.
Moreover, the IMF expects that the slowdown in Algeria’s overall growth in 2016 will be offset by an increase in natural gas production.
But at average term, minus-oil growth will remain below the traditional standards.
According to the figures given by the Fund, Algeria’s real GDP is set to increase by 3.6% in 2016 and 2.9% in 2017.
Inflation rate should stand at 5.9% in 2016 and decrease to 4.8%, according to the IMF forecasts.