Algeria’s economy will grow by 2.3% in 2019 and 1.8% in 2020, according to the World Bank.
The Bretton Woods institution in its World Economic Outlook report, noted that that the 2.3% estimate is an actualized estimate of the 2% growth forecast made in June 2018.
However, this actualized estimate (2.3%) is still slightly below the growth in 2018 when the country’s GDP recorded a 2.5% growth.
This expected slowdown of the North Africa country’s economy is mainly as a result due to the decrease of public expenditures in the context of a drop in oil prices, which represents 90% of Algeria’s exports.
“Algeria’s growth will slow down by 2.3% because of the progressive fall in public expenditure, which experienced a significant increase last year,” World Bank indicated, adding that 2019 will see a stagnation in the revival of the country’s export commodities.
The Bretton Woods institution also reviewed the 2020 forecast for Algeria from 1.3% (forecasted in 2018) to 1.8% in 2019.