Ambassador
Janet A. SANDERSON

embassy: 4 Chemin Cheikh Bachir El-Ibrahimi, Algiers

mailing address: B. P. Box 549, Alger-Gare, 16000 Algiers

telephone: [213] (21) 69-11-86, 69-12-55, 69-18-54, 69-38-75

FAX: [213] (21) 69-39-79

Flag description: two equal vertical bands of green (hoist side) and
white; a red, five-pointed star within a red crescent centered over
the two-color boundary; the crescent, star, and color green are
traditional symbols of Islam (the state religion)

Algeria Economy

Economy - overview: The hydrocarbons sector is the backbone of the
economy, accounting for roughly 60% of budget revenues, 30% of GDP,
and over 95% of export earnings. Algeria has the fifth-largest
reserves of natural gas in the world and is the second largest gas
exporter; it ranks fourteenth for oil reserves. Algiers' efforts to
reform one of the most centrally planned economies in the Arab world
stalled in 1992 as the country became embroiled in political
turmoil. Algeria's financial and economic indicators improved during
the mid-1990s, in part because of policy reforms supported by the
IMF and debt rescheduling from the Paris Club. Algeria's finances in
2000 benefited from the spike in oil prices and the government's
tight fiscal policy, leading to a large increase in the trade
surplus, the near tripling of foreign exchange reserves, and
reduction in foreign debt. The government continues efforts to
diversify the economy by attracting foreign and domestic investment
outside the energy sector, but has had little success in reducing
high unemployment and improving living standards.

GDP: purchasing power parity - $171 billion (2000 est.)

GDP - real growth rate: 5% (2000 est.)

GDP - per capita: purchasing power parity - $5,500 (2000 est.)

GDP - composition by sector: agriculture: 11%

industry: 37%

services: 52% (1999 est.)

Population below poverty line: 23% (1999 est.)

Household income or consumption by percentage share: lowest 10%:
2.8%

highest 10%: 26.8% (1995)

Inflation rate (consumer prices): 2% (2000 est.)

Labor force: 9.1 million (2000 est.)

Labor force - by occupation: government 29%, agriculture 25%,
construction and public works 15%, industry 11%, other 20% (1996
est.)

Unemployment rate: 30% (1999 est.)

Budget: revenues: $15.8 billion

expenditures: $16 billion, including capital expenditures of $5.3
billion (2001 est.)

Industries: petroleum, natural gas,