Algeria Cuts Deficit For 2018: Gains Will Likely Prove Short-Lived

Algeria notched up a $10.5bn deficit for 2018, the tenth in a row, though the lowest since oil prices crashed in the second half of 2014. But the numbers have taken a turn for the worse this year. And political instability presents a further downside risk.

Freshly released financial stats from the Bank of Algeria show the country’s deficit falling by 9% (13% in dollar terms) to a five-year low of $10.5bn for 2018.

The country – which appears to be entering a chronic period of political instability with elections canceled this week – saw its 2018 finances boosted by a 32% rise in oil prices to an annual average of $71.4/B for Algeria’s Saharan Blend crude, the highest level since 2014.

But lower export volumes, down 9.5% for oil and 6.3% for gas, mean that gains in revenue lagged price rises. Oil and gas revenues, at AD2,755bn ($23.5bn) for 2018, provided 41.6% of total budget revenues. These figures for net revenue to the Algerian treasury compare to gross hydrocarbon export revenue of $39.3bn, of which oil export revenue was up 16.7% at $22.35bn ( MEES, 7 June ), whilst gas export revenue rose 12.9% to $12.25bn. Oil and gas provide a whopping 93% of Algeria’s export revenue. (CONTINUED - 996 WORDS)

DATA INSIDE THIS ARTICLE

chart Algeria’s Budget Balance: Heading For 11th Straight Deficit In 2019, A Cumulative $118bn Since 2009
chart Breakeven Vs Actual Oil Prices ($/B): Algeria Still Needs Over $100/B To Balance The Books
table Algeria's 2018 Finances (Bn Dinars)