Algeria's Economic Situation Deteriorates on Weak Oil

Algeria is going through the pain of a budget crisis amid the global slump in oil prices. There are ongoing tensions within the Algerian government between those who suggest that Algeria needs to pass urgent reforms only, and those who want overall reform as well to develop both the non-hydrocarbon and private sectors.

Energy sales account for 95% of Algeria’s exports and provide 60% of the state budget; but export revenues have reduced owing to both falling oil prices and the depreciation of the dinar. For nearly 15 years, the Algerian government has been able to rely on comfortable oil revenues and, consequently, with available financial resources that helped the country in maintaining social peace.