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Algeria’s economic performance was described as “solid” by the executive director of the board of directors of the International Monetary Fund (IMF), Bahador Bijani, who affirmed that this strengthens the country’s position within this institution.
Received by the governor of the Bank of Algeria (BA), Salah Eddine Taleb, the executive director of the IMF board of directors praised Algeria’s economic performance. This was indicated in a press release from the Bank of Algeria made public this Wednesday.
“Algeria’s comfortable economic situation as well as the solidity of the indicators displayed, particularly in terms of economic recovery, balance of payments and external position, were expressed by the IMF mission under Article IV,” it was indicated.
The executive director also noted “the solidity of Algeria’s performance in recent years, which further strengthens its position within the institution,” adds the same source. It should be noted that Mr. Bijani represents on the IMF Board of Directors the geographical constituency of which Algeria is a member and which she represents to the International Monetary and Financial Committee.
The performances achieved by the Algerian economy have, moreover, already been highly highlighted by this institution.
Last March, the IMF estimated in its consultations, under Article IV of 2023, that the Algerian economy grew by 4.2% in 2023, a robust performance due to a rebound in hydrocarbon production and strong performance in the industrial, construction and services sectors.
Regarding the short-term outlook, the IMF estimated that they are generally positive but that inflation remains a concern. “Real growth is expected to remain strong in 2024, at 3.8%, supported in part by significant fiscal spending,” according to the Fund’s forecasts. It would be 3.1% in 2025.
In their assessment, the directors of the IMF board praised “Algeria’s solid and sustainable growth and its external position, despite multiple economic difficulties”.
Referring to the adoption of the monetary and banking law which aims to modernize financial markets as well as the operations and governance of central banks, the IMF also underlined that “greater flexibility of the exchange rate would strengthen its role as a shock absorber “.
The authorities’ commitment to reforms, including efforts to boost investment, improve fiscal transparency, strengthen the AML/CFT framework and tackle governance and corruption risks, was also noted. .
However, they highlighted “the importance of continuing structural reforms to improve the business environment, support the participation of young people and women in the labor market and promote diversified, green and private sector-led growth”.