Algeria’s finance ministry said the country’s economy grew by 2.3 percent, up from 1.4 percent the previous year. The growth was attributed to higher oil prices, but was still below the 4 percent predicted by the government.
The finance ministry noted that the price of Algeria’s oil exports in 2018 averaged $72.43 a barrel, against $52.71 in 2017. Oil and gas account for 60 percent of the budget and 94 percent of total exports revenue. After a 14 percent cut in 2017, the country increased state spending by 25 percent in 2018.
According to the finance ministry’s figures, Algeria has failed for now to develop its non-hydrocarbon sector, which grew four percent last year, up from 2.2 percent in 2017. The government expects the economy to expand by 2.6 percent this year due to a 1.5 percent reduction in spending and lower energy revenue projection.
As a result of growing domestic consumption, oil and gas earnings should reach $33.2 billion, down from the $34.37 billion target for 2018.
The Egyptian government is benefiting from a recovery in global crude oil prices. However, a large proportion of revenue from energy is still being used to pay for goods imports due to poor domestic production.