Algeria: World Bank Raises Algeria's Growth Forecasts for 2019-2020

(File photo).

Washington — The World Bank has raised its growth forecasts for the Algerian economy in 2019 and 2020, according to the updated forecasts of this international financial institution, published Tuesday, in Washington.

This institution banks, from now on, on a 2.3% growth rate in 2019 against 2% in the previous report on the World Economic Outlook, published last June, i.e. a 0.3% rise.

The updated forecasts for 2019 remain, however, slightly low compared to those of 2018, where Algeria's gross domestic product increased by 2.5%, according to the World Bank.

This slight drop is mainly due to the progressive fall in public expenditure, said the Bank.

See also: Algeria wins nine places in World Bank's Doing Business ranking

"Algeria's growth will slow down by 2.3% because of the progressive fall in public expenditure, which experienced a significant increase last year," said the World Bank in the note on the economic prospects in the Middle East and North Africa (MENA) region, accompanying this report.

It should be noted that this slowdown is expected in the wake of "the darkening of the global economic prospects" that the World Bank foresees this year.

See also: Industry, building and agriculture to boost growth in 2019

This year will be marked by a stagnation of the recovery in the countries exporting basic products, coinciding with the slowdown of the activity in the countries importing such goods, said the source.

The World Bank group adjusted its forecasts upward for 2020, expecting a 1.8% growth in Algeria against 1.3% anticipated in June, up by 0.5%.

This rate will also be maintained in 2021.

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