Algeria Economy 2012
Oil and gas production continues to dominate the Algerian economy, accounting for almost all of exports, close to half of government revenue and over a third of GDP. Hydrocarbons accounted for 34.7% of GDP in 2010, up on 2009 rates, but still lower than the figures of between 43% and 45% seen in the three preceding years. The decline is primarily attributed to a fall in oil prices. To diversify the economy away from a reliance on hydrocarbons revenues, one of the government’s aims is to boost industry’s share of GDP to 10% by 2014. The government also plans to spend €228.7bn on public works between 2010 and 2014 on both new and existing projects. However, limited administrative capacity means it is doubtful whether the government will be able to meet the investment commitments on schedule. This chapter contains interviews with Khedidja Belhadi, President and Founder, Association of Algerian Managers & Entrepreneurs (AME); Jim O’Neill, Chairman, Goldman Sachs Asset Management; and Réda Hamiani, President, Forum des Chefs d’Entreprises.