Sunday 4 June 2023 – 10:00
“Bankruptcy threatens the Algerian state by the year 2029”; A summary of a new report by the Center for Study and Reflection on the Francophone World under the title “Algeria will become the least wealthy of the Maghreb countries.”
The same source predicted the deterioration of the economic situation in Algeria during the next few years due to the total dependence of its national economy on oil and gas exports, whose prices have begun to return to pre-Ukrainian-Russian war levels, in addition to the increase in global supply and the country’s tendency to invest in renewable energies.
In this context, the Algerian economy depends mainly on hydrocarbons, which accounted for about 90% of Algeria’s exports abroad last year, unlike Morocco and Tunisia, “who were able to create a diversified and competitive economy that includes multiple sectors, such as the agricultural sector, the textile industry, cars, aviation, as well as tourism, As a result, they occupied advanced positions at the level of providing a good business climate.”
According to the latest classification of the African Development Bank issued last November, Morocco ranked second among the countries of the continent in terms of industrialization, while Algeria settled for the eleventh rank, and recorded during the year 2021 the lowest per capita GDP in the Maghreb region, as it did not exceed 3691 dollars. .
The same source expected the Kingdom of Morocco to be on the top of the industrialized countries in Africa during the next few years, as the gap between it and the first-ranked South African is less than 1 percent, stressing that the latter’s economy is also deteriorating.
Returning to Algeria, the Center for Study and Reflection on the Francophone World recorded that there is “an Algerian backwardness in joining the economic bandwagon led by Morocco at the Maghreb level, as the latter embraced in 2021 up to 56 companies among the 500 largest companies in the African continent, thus surpassing A number of countries like Egypt, while the number of companies investing in Algerian territory did not exceed 12 companies.
The center concluded that “the ineffective economic policy pursued by Algeria in the absence of major reforms and insufficient natural resources to hide the economic reality of this country,” will inevitably push it to “external borrowing and implementing structural reforms to avoid repeating the scenario of Venezuela, which is also an oil state.”
