Algeria was ill-prepared to confront a period of low oil prices and, as we warned might happen, the authorities have reacted by letting the dinar weaken, while a sharp fiscal squeeze is now on the cards. These measures will help to rein in the county’s large twin budget and current account deficits, but at the expense of much weaker economic growth – a recession is not out of the question next year.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.