The IMF is a Washington-based Bretton Woods institution that monitors economic developments on a global and national scale and provides financial assistance to certain countries. In this context, the International Monetary Fund has revised its Algerian economic growth projections upwards for 2022.
According to the institution’s latest report published at the spring meetings, this figure, previously estimated at just 1.9% in October 2021, has risen by 0.5% to 2.4%. The forecasts are very promising, as GDP is expected to grow by 2.4%, while experts expected only 0.1%; very significant development, which only indicates an improvement in the country’s economy. In addition, the country’s current account balance is expected to be positive, reaching 2.9% of GDP, which has not happened for many years, when the IMF predicted a rate of -5.5% of GDP. GDP will fall to -0.2% in October. 2023
According to the IMF, unemployment also had a positive effect
The unemployment rate is a key indicator of the overall state of the country, its economic activity and its development. That is why the IMF examines it in every report that provides forecasts that may lead certain countries.
According to this, the unemployment rate in Algeria should fall to 9.8% in 2023, and should fall very sharply in the coming years, while the IMF has announced an upward forecast indicating an increase to 14.7%, a rate that is being reassessed. In 2022, the IMF therefore estimates that the rate should reach 11.1% and fall to 9.8% in 2023.
These improvements in the overall situation are partly due to the increase in oil production following the agreement of the Organization of the Petroleum Exporting Countries and its allies, but also to significantly higher oil prices.
In addition, the country’s production policies and initiatives play an important role. In a country after a drought that will affect several sectors of activity, including agriculture, experts predict an improvement on this side as well.
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