Growth in Algeria will be sustained and should establish at 3.4% in 2016, against 3.5% in 2015, according to the International Monetary Fund’s (IMF) latest forecasts, published Tuesday in Washington.
For 2017, the IMF foresees a slight decrease in economic growth at 2.9%, but this rate is expected to improve and rebound to 3.4% in 2021.
The inflation will also remain almost stable in 2014 at 4.3%, against 4.4% in 2015 before declining in 2017 to 4.0%, foresees the IMF in its biannual report on the world economic outlook published Tuesday in Washington on the eve of its spring meeting.
Algeria’s balance of payments will remain in deficit and will represent 17.1% of the GDP in 2016 against 15.7% in 2015. The deficit is expected to decrease in 2017 to 16.2% of the GDP, to finally drop to 8% of the GDP in 2021.
Furthermore, the IMF said that the global economy will experience a slow pace growth in 2016, impacted by major risks that are financial, geopolitical or linked to political dissensions.
The IMF foresees growth rates of 2.3% in 2016 and 3.5% in 2017, a downward revision of respectively 0.2% and 0.1% , compared to its forecasts published last January.
“Less growth means less room for error,” said Maurice Obstfeld, Economic Councellor and Director of Research at the IMF during the conference press.
Credit: All Africa