Algeria’s economy to slump in 2017

Algeria’s economy held up better than expected last year as a rebound in the hydrocarbon sector offset weakness in the non-hydrocarbon sector. However, the adjustment to low oil prices is far from over and a further depreciation of the dinar and more fiscal austerity is on the cards. As a result, we expect the economy to do little more than stagnate this year, whereas most analysts expect growth of 2-3%.