Upon conclusion of an assessment mission to Algeria, IMF delegation head Zeine Zeidane issued a preliminary press statement outlining a overall positive assessment of the macroeconomic picture there, with GDP up 2.7% and government measures having brought inflation under control (4.5% in October, against 8.9% in 2012) wiped out the public deficit. Positive also is judgement of the financial system, which appears solid and well-capitalised but which should make a greater effort to ensure financing to SMEs. The only negative note is reduction of the balance of payments surplus. IMF experts suggest the adoption of legislative measures to limit increased public spending so as to consolidate the results achieved, redirecting attention also to Algeria’s lower productivity and higher labour costs compared with other area economies. They suggest improvement of the business climate and the liberalisation of foreign investments, along with better market training of young people. As regards lowering the trade surplus, concerns regard the aspect of quality more than of quantity. The real problem lies in excessive growth in imported consumer goods over recent years as opposed to asset investments.
(InfoMercatiEsteri)
