World Bank foresees strong growth upturn for Algeria in 2018
The World Bank (WB) published Tuesday Algeria’s economic growth forecasts for 2018 and 2019, a rebound that will be supported by the government’s new budgetary measures.
According to the Bretton Woods’ biannual report on global economic forecasts published in Washington, Algeria’s GDP growth should reach 3.6% in 2018 against 1% anticipated in its previous edition of June 2017, an increase of 2.6 points.
The WB also adjusted upward its growth forecast for 2018 to 2.2% against 1.8% initially anticipated, a difference of 0.4 points.
Growth should drop to 2.5% in 2019 but it will however remain upward by one point compared to the 1.5% forecast anticipated last June, according to the World Bank.
The WB noted that the new government investment spending and budgetary measures associated with the 2018 Finance law are expected to raise growth in the short-term.
“In Algeria, new government investment spending associated with the 2018 budget and a more expansionary fiscal stance than previously planned is expected to raise growth in the short-term,” said the World Bank in its chapter devoted to the regional outlook in the Middle East and North Africa region (MENA).
For this year, Algeria will have a high pace and will do better than the majority of the MENA region countries, including oil-exporting countries, where growth is slowing down, noted the World Bank.