Algeria: Selected Issues and Statistical Appendix

This Selected Issues paper and Statistical Appendix deals with the issue of low growth in Algeria. A growth-accounting exercise indicates that negative total factor productivity growth explains Algeria’s low growth rates. This paper highlights the sources of this low growth that mainly consist of incomplete structural reforms and the weaknesses of Algeria’s institutions. It describes policy recommendations, focusing on the institutional reforms required to improve the business environment. The paper also analyzes Algeria’s monetary policy in the context of volatile hydrocarbon revenues.


This Selected Issues paper and Statistical Appendix deals with the issue of low growth in Algeria. A growth-accounting exercise indicates that negative total factor productivity growth explains Algeria’s low growth rates. This paper highlights the sources of this low growth that mainly consist of incomplete structural reforms and the weaknesses of Algeria’s institutions. It describes policy recommendations, focusing on the institutional reforms required to improve the business environment. The paper also analyzes Algeria’s monetary policy in the context of volatile hydrocarbon revenues.

III. Money Demand and Monetary Policy: Evidence From Algeria24

This chapter analyzes selected issues in Algeria’s monetary policy in the context of volatile hydrocarbon revenues. It first examines the nature and the stability of the demand for money. It also examines the impact of oil price shocks on money supply. Finally, the chapter discusses the appropriate monetary instruments and the needed coordination between fiscal and monetary policies to avoid disequilibrium in the money market.

A. Introduction

46. A key consideration for monetary policy design in Algeria is to assess whether the money demand function is stable. This paper examines the stability of the money demand function, and assesses if modeling the money demand could assist the Bank of Algeria in formulating and executing its monetary policy, considering Algeria’s high dependence on oil exports.

47. Monetary policy conduct in Algeria must also take into account the origin of shocks to money supply, since money supply is highly affected by volatile hydrocarbon revenues. The paper analyzes the channels through which oil price shocks increase/decrease the liquidity in the market, and explores the possible short term instruments that the Algerian authorities can use their monetary policy intermediate objective of targeting the money stock in the context of high dependency on oil and of underdeveloped financial markets.

48. The rest of the paper is organized as follows: The next section describes the current monetary policy regime in Algeria. The third section presents an econometric estimation of the money demand equation, tests its stability, which is the logical foundation for the choice of the current monetary policy intermediate objective. It also analyzes in a simple accounting framework the crucial role of government expenditures in the transmission of oil shocks to the money supply. The fourth section discusses the suitability of current policy instruments to achieve the monetary policy objective. Section five concludes the analysis.

B. Background and Features of Algeria’s Monetary Policy

49. The conduct of monetary policy in Algeria is complex. Algeria began the process of opening its economy in the early 1990s, by reforming, inter alia, the financial sector and the conduct of monetary policy, with the introduction of indirect instruments of monetary control. However, monetary policy in Algeria is still conducted in a difficult context because it is affected by the economy’s strong dependence on hydrocarbon exports (35 percent of GDP, 95 percent of total exports, and 70 percent of total fiscal revenues on average) and the volatility of energy prices on international markets. In practice, foreign currency receipts generated by hydrocarbon exports are repatriated and surrendered by Sonatrach25 to the Bank of Algeria, which in turn credits Sonatrach’s account held at its commercial bank, the BEA (Banque Extérieure d’Algérie), in dinar. Most export receipts (65 percent) are then transferred to the Treasury in the form of staggered tax payments. The remaining 35 percent share of Sonatrach actually contributes to an increase in the money supply, when the government does not spend its share. However, to the extent that fiscal policy is procyclical, and a large part of fluctuating revenues from hydrocarbon exports are injected back in the economy through government expenditures, variations in hydrocarbon revenues tend to translate into fluctuations in the stock of money, in the absence of systematic sterilization. Therefore, the largest part of the potential money creation resulting from an increase in hydrocarbon revenues actually arises from expansionary fiscal policies supported by higher revenues. However, even in a case of acyclical fiscal policy, banking system liquidity is subject to large swings as a function of international oil prices because of their impact on Sonatrach’s deposits in commercial banks. For example, the banking system experienced chronic liquidity shortages during the oil price collapse in 1998–99, and has now excess liquidity in the wake of high oil prices. Therefore, a primary concern of the central bank, when implementing monetary policy, has been to control the liquidity of banks through interventions on the interbank market.

50. Algeria’s underdeveloped financial system does not dampen external shocks through fluctuation of market-determined interest rates. The banking sector continues to be dominated by six public banks that account for about 95 percent of all deposits and assets, and whose portfolios are heavily biased toward government securities and public enterprise loans. The Algiers Stock Exchange, which opened in July 1999, is still modest in size. 26 In July 2001, the Treasury started issuing medium- and long-term bonds, but in limited amounts. The money market includes two segments: (a) an interbank money market, which is also open to nonbank financial institutions; and (b) a short-term Treasury bill market, which is thin.

51. Against this background, and in order to improve the conduct of the Bank of Algeria’s monetary policy, two important questions need to be addressed:

  • In an environment of volatile hydrocarbon revenues, is the real demand for money stable in Algeria, and how does a disequilibrium in the money market (e.g., excess money supply) affect inflation?

  • What are the instruments that the Bank of Algeria should use in order to achieve its monetary policy intermediate objective in the wake of fluctuating oil revenues, and how can the fiscal authorities help maintain macroeconomic stability?

C. The Demand for Money and Oil Shocks to the Monetary Equilibrium

52. An important prerequisite for operating a policy framework around monetary targets is a stable and predictable demand for money. In the absence of a stable money demand function, monetary growth targets might be inconsistent with developments in the real economy, the resulting real interest rate may diverge from its equilibrium value. This section estimates a long-run money demand function in Algeria, tests its stability, and assesses whether the recent disinflationary trend against a backdrop of strong growth in monetary aggregates results from a structural break. This section also examines how oil price shocks could affect the money supply and create disequilibrium in the money market.

53. Caution is called for in assessing and interpreting the results of the analysis. Serious data limitations in monetary statistics, national accounts, and price indices limit the analysis. There are no published data on GDP at constant prices, and the following empirical analysis is based on staff estimations of GDP at constant prices. The basket adopted in the calculation of the consumer price index (CPI), which is used to measure inflation, has not been updated since 1989. In addition, the length of the period since the gradual liberalization of prices—starting in 1994—is short. Similarly, while the behavior of monetary aggregates excluding Sonatrach’s deposits would better reflect the money demand in the economy—since the hydrocarbon sector may have a different demand for money, data on the distribution of banking deposits between the hydrocarbon and non hydrocarbon sectors do not exist.

Theoretical Framework and Empirical Analysis

54. We postulate a demand for real money balances, which is a function of real GDP, inflation and interest rates. The model can be summarized as follows:

m = f(y, π, i)


m=MdP= demand for real money (M2 aggregate in real terms)

y = real income (GDP at constant prices)

π = inflation rate (annual change in the average CPI)

i = interest rate (discount rate)

55. Annual data for the period 1974–2001 are used.27 The variables are expressed in logarithmic terms, with the exception of the interest rate and inflation. The inflation rate is measured by the variation of price levels in logarithmic terms.

56. The empirical investigation starts with the analysis of the time-series properties of all variables. The augmented Dickey–Fuller (1981) (ADF) indicates that the nonstationarity hypothesis cannot be rejected at 5 percent confidence in the monetary aggregates, real GDP, the annual inflation rate, and the interest rates. However, for the first difference of the same variables, the hypothesis of nonstationarity is rejected at 5 and 1 percent confidence, suggesting that these variables are integrated of order one I(1) (Table 4).

Table 4.

Statistics for ADF(2) Unit Root Tests

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Notes: Variables are as defined in the text. For each variable expressed in level (first difference), the Augmented Dickey-Fuller (1979) ADF(2) statistics tests a null hypothesis of a unit root in that variable expressed in level (first difference) against an alternative of a stationary root, The criterion for lag selection is based on the Akaike information criterion, as described by Pantula et. Al. (1994). The critical values are taken from MacKinnon (1991). + *, and ** denote rejection at 10 percent, 5 percent and 1 percent critical values, respectively.

57. The long-run relationship between m2, y, π, and i is therefore estimated in the form of a cointegrating vector. Two dummies are used as exogenous variables to capture the impact of the structural reform efforts that took place in 1988 and 1994. The Engle-Granger (1987) and Johansen’s maximum likelihood procedures (1988) are used to determine the number of cointegrating vectors among the variables.28 Both procedures indicate that there is at most one co-integrating vector (at 5 percent confidence). The long-run money market equilibrium takes the following form:

m=6.49+1.32y1.59π0.03i(1)(0.04)(0.06)(0.01)[8.79][1.99][3.46]R2=0.73Standard Error= 0.06

58. All the coefficients of the equation have the expected sign. A coefficient higher than unity on output in the long-run money demand function shows a declining rate of velocity in the long-run. This is consistent with the experience of countries, like Algeria, where money is the principal instrument for the accumulation of financial savings by the public. The equilibrium relationship also shows that the interest rate has a very small impact on the quantity of money the public wants to hold, confirming the behavior of public enterprises that dominate the economy and are not sensitive to interest rates, as well as the absence of alternative financial instruments. The money market equilibrium is, however, very sensitive to the rate of inflation.

59. Equation (1) tracks real M2 well and deviations are generally of a small magnitude. Figure 3 plots the actual (money stock in real terms) and the fitted values of money. In addition, since 2000, the money supply has exceeded the level predicted by the money demand function, suggesting the existence of excess money supply in the Algerian money market, and thus raising the question of possible inflationary consequences of such disequilibrium.

Figure 3.
Figure 3.

Fitted and Actual Real M2, 1974-2001

Citation: IMF Staff Country Reports 2003, 069; 10.5089/9781451811421.002.A003

Source; Algerian authorities and staff estimates

60. Tests of weak stationarity indicate that y, m, and i are weakly exogenous to this co-integrating relationship, and that the inflation rate, π adjusts to the disequilibrium in the money market.29

61. The estimation of a short-term single error-correction equation is used to analyze the dynamics of inflation. By using ordinary least squares, equation (2) estimates the first difference of inflation, using the first difference of real money stock, output, interest rate, the two dummy variables to take into account the two attempts of economic liberalization, and the first lag of the error term ε as explanatory variables. After removing the statistically insignificant variables from this general equation, we obtain the following equation for the period 1982–2001 (figures in parentheses represent standard errors; figures in brackets represent t-statistics):

Δπt=0.02 +0.037Δm(t1) +0.02Δi(t1) +0.01Δi(t2)(0.01)(0.00)(0.00)[2.87][3.23][2.86]+0.04dummy1+0.03dummy2+0.03ϵ(2)(0.01)(0.03)(0.05)[2.02][1.95][2.32]R2=0.76 DW=2.15Standard Error=0.04

62. The model fits the data quite well. The residuals are very small (Figure 4). Excess money and lagged real money has a positive impact on inflation, suggesting that increased monetary aggregates have inflationary consequences. The two dummies have also positive, albeit small, impact on inflation, suggesting that the economic liberalization efforts of 1988 and 1994 led to a slight increase in inflation in the short run. Finally, the lagged and twice lagged variations of interest rates enter the equation with positive coefficients, suggesting that an increase in interest rates have very small impact on inflation. This result suggests that in Algeria an increase in the interest rate has little effect on demand and that its main impact is to increase costs of production.

Figure 4.
Figure 4.

Actual and Fitted Changes in inflation, 1982-2001

Citation: IMF Staff Country Reports 2003, 069; 10.5089/9781451811421.002.A003

Source: Algerian authorities and staff

63. The model predicts an acceleration of the inflation rate in the context of excess liquidity. The fitted value of the change in inflation suggests that in 2001, in the context of excess money supply, inflation should have increased above its actual level. A series of stability and break-point tests were carried out to measure the strength of the model and to gauge whether there was any structural change in inflation dynamics during the latter part of the sample (1994-2001), in the context of an excess money supply.30 The two types of Chow breakpoint and Chow forecast tests did not reject the hypothesis of model constancy over the sample period. The non-acceleration of inflation in 2001 and in particular its decline in 2002 against a background of strong monetary growth is the result of factors that have not been included in the equation, such as tariff reduction in 2001 and 2002. In the future, there seems to be little prospects for much further growth in real money without upward pressure on inflation.

64. While the stability of the money demand matters if monetary policy targets a monetary aggregate, it is not sufficient for successful targeting, since the central bank does not fully control that aggregate. It only controls the reserve money. The ability of the central bank to control M2 depends, therefore, on the predictability of the money multiplier. Therefore, further research (not covered in this paper) on the relation between reserve money and the M2 aggregate is required to complete the assessment of the transmission mechanisms of monetary policy in Algeria.

Oil Price Shocks and Monetary Equilibrium

65. The impact of hydrocarbon revenues on monetary aggregates can be a source of disturbance in the money market. Analyzing the channels through which an increase in international prices for hydrocarbon affect the money market equilibrium will help design better policies. In this section, a simplified accounting framework is used to show that an increase in international oil prices creates money market disequilibrium, and that the degree of ex-ante excess money supply depends on the distribution of hydrocarbon revenues between the government and the oil companies, and on the government expenditure policy.

66. The short-term impact of a positive price shock in the hydrocarbon sector in a fixed exchange rate regime could be expressed through the following equation.



Ms = money supply

NFA= net foreign assets

NCG = net credit to the government

CE = credit to the economy

67. Suppose that the money market is at equilibrium and that we have a sudden increase in the international price of hydrocarbons that only affects, in the short run, the value of exports by an amount ΔR; in particular, we assume that the external demand for hydrocarbons and domestic production (as well as the domestic demand for imports) are unchanged at this stage. Other things being equal, foreign exchange reserves will also increase by ΔR.

Therefore, as a first approximation:


68. Before taking into account the second round effects resulting from changes in the liquidity of the banking system, banks’ credit supply is unchanged by this accumulation of net foreign assets, and:

ΔCE = 0.

Assuming that a share α of additional hydrocarbon export proceeds accrues to the government,31 and that it is saved, we arrive at:


Therefore, money supply increases ex-ante by:

ΔM3 =(1–α)ΔR.

69. The demand for money is, however, not directly affected by the shock ex-ante. Real GDP, unlike nominal GDP, is not directly impacted by a hydrocarbon price change, at least in the short term.32 The same goes for the nominal interest rate and, to a lesser extent, for the consumer price level.33

70. An oil price shock will, therefore, create an ex-ante disequilibrium on the money market—assuming no response from monetary authorities—which can be reestablished through one (or a combination)34 of the following:

  • A decrease in the nominal interest rate;

  • An increase in the price level; and

  • An increase in real GDP.

71. The model shows that the degree of ex-ante excess money supply depends crucially on the distribution of hydrocarbon revenues. For instance, if all revenues accrue to the government, and if the latter decides to save any unexpected revenues in its central bank account we have (assuming no variation in credit to the economy):



ΔM3 = ΔR – ΔR + 0 = 0.

72. In such a context, the money market would thus remain at equilibrium. However, since in Algeria, 65 percent of hydrocarbon revenues accrue to the government, the monetary policy has to deal with the remaining 35 percent, which represents Sonatrach’s share, as well as the liquidity injected in the market resulting from the government use of hydrocarbon revenues.

D. Monetary Policy Instruments in the Wake of Oil Price Shocks

73. Before discussing the various policy responses to a temporary positive shock on hydrocarbon prices that might be envisaged, as well as their appropriateness to the Algerian economy, it is useful to review what happened over the last three years (2000–02) in Algeria, when net foreign assets increased substantially in the wake of an increase in hydrocarbon prices.

Recent Economic Developments

74. Monetary expansion was relatively contained in 2000: while the increase in net foreign assets amounted to 34 percent of the initial money stock, broad money only increased by 13 percent in 2000. This control was, however not due to monetary operations, but rather to a partial sterilization of net foreign asset accumulation through fiscal policy. In fact, in April 2000, the authorities established an oil stabilization fund to save any hydrocarbon revenues in excess of those budgeted (below). Even though the fiscal policy stance was relaxed compared to 1999 (the nonhydrocarbon deficit increased by 6 percent of nonhydrocarbon GDP) and part of the non-budgeted revenues were not saved, this expansion was still small relative to the increase in net foreign assets.35 This is shown by the substantial increase in overall budget balance from almost nil in 1999 to around 10 percent of GDP in 2000.

75. Monetary policy did not have adequate instruments to absorb excess liquidity in 2001, in the context of expansionary fiscal policy. Despite continuously increasing hydrocarbon revenues, total fiscal surplus shrunk substantially in 2001.36 Reflecting this development, coupled with substantial debt servicing payments made by the Treasury to public banks, money growth increased rapidly from 13 percent in 2000 to more than 22 percent in 2001. This rise occurred despite the lower increase in net foreign assets in 2001 and 2002 compared to 2000 (26 percent in 2001 against 34 percent of the initial money stock in 2000). It led to higher prices, and the average inflation rate increased from nil in 2000 to 4.2 percent in 2001. The following observations are consistent with the diagnosis of excess liquidity: (a) for most of 2001, banks resorted only to the rediscount window for central bank refinancing, and the use of this facility ended in November 2001, with a significant drop in banks’ refinancing needs; (b) banks have maintained reserve balances at the central bank well in excess of required amounts; and (c) interest rates have substantially declined on the interbank money market, and fell below the rediscount rate in the autumn of 2001. As of end-2001, the Bank of Algeria did not have the appropriate instruments to withdraw liquidity from banks. The only active instrument was the rate of reserve requirements, which was raised from 3 percent to 4.25 percent during the last quarter.

76. The monetary authorities introduced a new instrument to absorb excess bank liquidity in 2002. In the wake of continuous accumulation of foreign assets, and given the further relaxation of the fiscal stance, the monetary authorities decided to introduce in April 2002 a deposit facility (or negative liquidity auctions) at the central bank to absorb banks’ excess liquidity.37 However, in the initial transactions under this new facility, the Bank of Algeria has accepted only part of the liquidity offered by commercial banks, meaning that there is still some excess liquidity in the market. If this excess liquidity persists, it might lead to further expansion of the money supply through new credits, and put upward pressure on prices.

Instruments to Sterilize Excess Money Supply

77. This section analyzes only the measures that could be taken in the short term to address money market disequilibrium in Algeria, namely sterilization. Sterilization is, however, a costly process, and should not be adopted on a permanent basis. The paper does not address long term structural deficiencies hindering financial deepening, nor does it address other fundamental questions of macroeconomic policy, such as the appropriate level of government expenditure over the long run or the optimum rate of saving

78. The monetary impact of hydrocarbon export revenues cannot be analyzed separately from fiscal policy decisions. In addition to the negative liquidity facility, other monetary instruments and fiscal measures could be used by the Algerian authorities if they were to face this situation in the future.38

Sterilization through monetary operations

79. In order to be able to appropriately address similar situations of excess liquidity in the future, the Bank of Algeria might wish to sterilize additional hydrocarbon-related export earnings through open market operations such as issuing treasury or central bank bills over the medium term.39 By selling securities (such as treasury bills or central bank bills) on the money market, the monetary authorities might be able to mop up excess liquidity so as to prevent the nominal interest rate from falling.40 In addition, open market operations would help develop the financial markets in Algeria.

80. Since the sterilization capacity in Algeria is currently limited by the underdevelopment of money and financial markets, the monetary authorities should, in the short term, continue resorting to negative liquidity auctions. However, they need to improve its implementation by fully absorbing the excess liquidity, instead of accepting only part of the liquidity offered by banks, which is currently the practice.

Sterilization through fiscal policy

81. Sterilization through fiscal policy is another option to rein in excess liquidity in Algeria. Since most of the hydrocarbon revenue accrues to the government, sterilization through fiscal policy is both easy and warranted to avoid the macroeconomic instability resulting from a procyclical fiscal policy that would transmit the swings of the word oil market.

82. Following the 1994–98 programs, when automatic adjusters on overall fiscal targets helped sterilize excess revenues, a stabilization fund was established in 2000. The Algerian authorities, aware of the costs of high uncertainty, decided in 2000 to adopt a longer term perspective which, in principle, should have led them to sterilize the impact of oil price shocks through fiscal policy.41 The oil stabilization fund was established, and the supplementary budget law for the 2000, and 2001 and 2002 budgets was based on conservative oil price assumptions.42 The purpose was to set expenditures in a multi-year perspective and to avoid, in particular, having to adjust them regularly—and sometimes drastically—because of oil price fluctuations.

83. In the period ahead, it is important that Algeria avoid a procyclical fiscal stance, and that the Treasury coordinate with the Bank of Algeria on liquidity management. During periods of abundant hydrocarbon revenues, the government should be prudent in relaxing the fiscal stance, and when monetary sterilization cannot mop-up the total excess liquidity, fiscal sterilization should complement the Bank of Algeria’s efforts. Therefore, Algeria’s high dependency on oil requires that monetary policy be coordinated with other policies (fiscal in particular) aimed at managing the excess liquidity of the economy.

Sterilization through foreign exchange interventions

84. Sales of foreign exchange are a possible instrument to sterilization. However, in the context of an economy where there is no complete capital account convertibility, such interventions imply significant exchange rate volatility.

Sterilization of Sonatrach’s share of the hydrocarbon revenue

85. Even if Sonatrach actually “sterilizes” its deposits by holding them in commercial banks rather than adjusting its expenditures and financing plans in reaction to changes in its own liquidity, its large share of hydrocarbon revenues still affects the total liquidity of the banking system. As discussed previously, the share of the hydrocarbon revenue accruing to Sonatrach is not negligible. Therefore, large fluctuations in hydrocarbon prices can have significant consequences on its financial situation and, in fine, on the domestic banking sector’s liquidity, since Sonatrach holds its deposits in dinar in the banking system.

86. The case could therefore be made for trying to sterilize in the short term at least part of Sonatrach’s windfall gains consecutive to an increase in oil prices. This could be done either through the issuance of Treasury bills to back these deposits, or by allowing Sonatrach to hold foreign exchange deposits in the domestic banking system. This is why this measure might be resisted by the authorities, especially when the traded goods sector is already being “cannibalized” by the hydrocarbon sector.43 Therefore, an exchange rate adjustment should probably not be the first line of defense, but rather one which is envisaged after sterilization has already been tried.

E. Conclusions and Recommendations

87. This study finds that money demand is stable and predictable in Algeria. The empirical results have an important bearing on the feasibility of framing monetary policy around targets for monetary aggregates. While the empirical analysis shows that targeting the M2 aggregate is an appropriate intermediate objective for Algeria’s monetary policy, the Bank of Algeria does not have a full control of M2. Further work is, therefore, needed to deepen the analysis of the channels of monetary policy transmission to clarify the choice of targets for Bank of Algeria’s intermediate objective.

88. The empirical study also shows that excess money supply has implications on the behavior of prices. Therefore it is likely that much further growth in real money in the future would lead to upward pressure on inflation.

89. It is, however, important to be prudent when using the outcome of the empirical model for future policy design. Given the weaknesses of the data, and because the period of coverage of the empirical study covers episodes preceding economic liberalization, it is recommended to use the empirical findings for future policy design with caution.

90. In designing monetary and fiscal policies, the Algerian authorities need to take into account the impact of oil price shocks. While higher oil revenues create disequilibrium on the money market, this disturbance is amplified when fiscal stance is expansionary, and the government monetizes its share of hydrocarbon revenues through higher expenditures.

91. The Bank of Algeria should develop the appropriate instruments to control the market liquidity through increasingly relying on modern market-based monetary management. In this regard, acquiring an in-depth knowledge of the channels through which monetary policy is transmitted would increase the effectiveness of monetary policy in achieving its targets. In addition, to facilitate monetary management, it is important to promote the development of the money and financial markets by including a policy of regular treasury security issues.

92. However, coordination between monetary and fiscal policies remains the main key for success. Given the magnitude of potential liquidity swings linked to hydrocarbon revenue fluctuations, the monetary authorities cannot manage alone the excess liquidity in an effective manner. Coordination between monetary and fiscal policies is a prerequisite for liquidity control. The Bank of Algeria needs to coordinate with the Treasury to increase the issuance of Treasury bills, which could be progressively used for open market operations. Second, it is important to establish at the Ministry of Finance a system for forecasting treasury operations. Forecasts should be reported to the central bank, and used to regulate the liquidity of the system. Finally, prudence in fiscal policy is a necessity during periods of large-scale hydrocarbon revenues, in order to promote monetary stability.

APPENDIX I Weak Exogeneity Test Statistics

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APPENDIX II Model Stability Tests


Inverse Roots of AR Characteristic Polynomial

Citation: IMF Staff Country Reports 2003, 069; 10.5089/9781451811421.002.A003


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Table 1.

Algeria: Supply and Use of Resources at Current Prices, 1997–2001

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Sources: Algerian authorities.
Table 2.

Algeria: Sectoral Distribution of GDP at Current Prices, 1997–2001

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Sources: Algerian authorities.
Table 3.

Algeria: Sectoral Distribution of Real GDP Growth, 1997–2001

(In percent)

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Sources: Algerian authorities.
Table 4.

Algeria: Production, Exports, and Consumption of Petroleum Products, 1997–2001

(In millions of tons)

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Source: Algerian authorities.

By-product of gas production.

Reflects change in inventories and errors of measurement.

Table 5.

Algeria: Production, Exports, and Consumption of Gas Products, 1997–2001

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Source: Algerian authorities.

Net of gas reinjected into producing oil wells.

Equal to net production minus gas flared, gas used for lifting and for fuel gas, and other losses in the fields.

Reflects errors in measurement.

Table 6.

Algeria: Domestic Prices of Major Energy Products, 1997–2001

(In dinars per liter; unless otherwise indicated)

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Sources: Algerian authorities.
Table 7.

Algeria: Land Use Patterns, 1997–2001

(In thousands of hectares)

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Source: Algerian authorities.

Industrial tomatoes and tobacco.

Potatoes, tomatoes, garlic and onions, and watermelons.

Table 8.

Algeria: Crop Yields, 1997–2001

(In kilograms per hectare)

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Source: Algerian authorities.
Table 9.

Algeria: Livestock, 1997–2001

(In thousands of heads)

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Source: Algerian authorities.
Table 10.

Algeria: Index of Industrial Production in Public Enterprises, 1997–2001

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Source: Algerian authorities.
Table 11.

Algeria: Production of Minerals, 1997–2001 1/

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Source: Algerian authorities.

Excluding hydrocarbons.

In thousands of containers, each weighing 34 kilograms.

Table 12.

Algeria: Consumer Price Index, 1997–2001 1/

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Source: Algerian authorities.

Includes 256 items and covers households in the area of Algiers.

Table 13.

Algeria: Income of Households, 1997–2001

(In billions of dinars)

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Source: Algerian authorities.

Includes social security contributions paid by employees.

Table 14.

Algeria: Labor Force, Employment, and Unemployment, 1997–2001 1/

(In thousands; unless otherwise indicated)

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Source: Algerian authorities.

Data are not strictly comparable over time, as surveys are conducted in different months and use different classifications.

Including military draft and irregular employment.

Table 15.

Algeria: Summary of Central Government Operations, 1997–2001

(In billions of dinars)

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Source: Algerian authorities.

Including dividends on current profits paid by Sonatrach.

Excluding privatization receipts, which are reclassified under nonbank financing.

Covers expenditures for food subsidies, agricultural price support, and cash transfers for the poor.

Including special accounts, net lending and operations of the Rehabilitation Fund.

Including debt rescheduling proceeds blocked on account at the Bank of Algeria.

Includes external debt rescheduling proceeds.

Table 16.

Algeria: Composition of Central Government Revenue, 1997–2001

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Source: Algerian authorities.

For 2001, privatization receipts of DA 27.1 billion were reclassified in financing.

Table 17.

Algeria: Central Government Revenue, 1997–2001

(In percent of GDP)

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Source: Algerian authorities.