Capital City: Algiers
	It is %T:%M %A in Algiers

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Economic trends

The oil sector remains the backbone of Algerian economy. The government plays a leading role in planning the economy and owns many important industrial concerns. Because of rising oil prices, the country’s economy has shown good performance in recent years. The GDP growth rate was 3.6% in 2006 and 4.8% in 2007. It is projected to reach around 5.2% in 2008. The government will remain broadly committed to economic liberalization, and will continue to seek foreign investment in sectors like infrastructure, telecommunications, power and water. The current-account is forecast to record robust surpluses in 2008, averaging around 16.8% of GDP.

Main branches of industry

Agriculture contributes around 8% to the GDP and employs about 25% of the active population. The principal crops are wheat, barley, oats, citrus fruit, wine grapes, olives, tobacco, and dates. Algeria is an important producer of cork. Large numbers of livestock is also raised. The oil sector accounts for roughly 60% of the budget revenues, nearly 30% of GDP, and over 97% of export earnings. Algeria is also the 2nd largest gas exporter in the world. Algeria ranks 14th in oil reserves and 7th in gas reserves globally. Other minerals extracted in significant quantities include iron ore, lead, phosphates, uranium, zinc, salt, and coal. The main activities in the manufacturing sector include: food-processing, clothes & textiles, chemicals, metals, and building material. The services sector contributes nearly 30% to the GDP.

International trade

Algerian economy is slowly but surely opening up. The share of foreign trade in its GDP is around 70% (mainly due to oil exports). Algeria signed an Association Agreement with the EU in 2005. The top three export partners of Algeria are: the USA, Italy and France. The commodities mainly exported are mineral fuels & oils, iron & steel, inorganic chemicals, and fertilizers. Its top three import partners are: France, Italy and Germany. Algeria mainly imports machines, electric & electronic equipment, vehicles, cereals, and pharmaceutical products.