Algeria: Deficit Down As IMF Warns On Over-Zealous Consolidation Plans

Algeria’s trade deficit is on track to fall to $11.4bn this year, the lowest level since oil prices collapsed in late-2014. The key reason for the recovery so far is the rebound in oil prices though Algiers has ambitious economic reform plans. Perhaps too ambitious, the IMF says.

Prices for Algeria’s key Saharan Blend export crude grade averaged $55.59/B for the first five months of 2016, up 35.5% on the same period a year earlier. This, together with an increase in export volumes of both gas (MEES, 5 May) and crude oil, means that the country’s revenue from oil and gas export revenues rose by 43% ($4.5bn) to $14.9bn for the first five months of 2017 (see table).

But strong oil price gains in early 2017 have since partly been reversed (see p16). Prices for Saharan Blend averaged around $47.5/B in June, in line with Brent, the futures curve for which is currently averaging just over $48/B for the remainder of 2017. (CONTINUED - 612 WORDS)

DATA INSIDE THIS ARTICLE

table Algeria Key Trade Data ($Bn): Deficit Set To Fall To 'Only' $11.4bn For 2017