ls of Islam
(the state religion)

Economy

Economy--overview: The hydrocarbons sector is the backbone of the
economy, accounting for roughly 52% of budget revenues, 25% 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
began after the 1986 collapse of world oil prices plunged the
country into a severe recession. In 1989, the government launched a
comprehensive, IMF-supported program to achieve economic
stabilization and to introduce market mechanisms into the economy.
Despite substantial progress toward economic adjustment, in 1992 the
reform drive stalled as Algiers became embroiled in political
turmoil. In September 1993, a new government was formed, and one
priority was the resumption and acceleration of the structural
adjustment process. Burdened with a heavy foreign debt, Algiers
concluded a one-year standby arrangement with the IMF in April 1994
and the following year signed onto a three-year extended fund
facility which ended 30 April 1998. Progress on economic reform, a
Paris Club debt rescheduling in 1995, and oil and gas sector
expansion have contributed to a recovery since 1995. Investments in
developing hydrocarbon resources have spurred growth, but the
economy remains heavily dependent on volatile oil and gas revenues.
The government has continued efforts to diversify the economy by
attracting foreign and domestic investment outside the energy sector
in order to reduce high unemployment and improve living standards.

GDP: purchasing power parity--$140.2 billion (1998 est.)

GDP--real growth rate: 3.2% (1998 est.)

GDP--per capita: purchasing power parity?$4,600 (1998 est.)

GDP--composition by sector:
agriculture: 12%
industry: 51%
services: 37% (1997 est.)

Population below poverty line: 22.6% (1995 est.)

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 26.8% (1995)

Inflation rate (consumer prices): 9% (1998 est.)

Labor force: 7.8 million (1996 est.)

Labor force--by occupation: government 29.5%, agriculture 22%,
construction and public works 16.2%, industry 13.6%, commerce and
services 13.5%, transportation and communication 5.2% (1989)

Unemployment rate: 30