Algerian President Abdelmadjid Tebboune on Thursday approved a 2021 budget which foresees a deficit of around 14 percent of GDP, the presidency said, as the oil-dependent country grapples with economic woes. Earlier this year Tebboune acknowledged the economy’s “vulnerability” due to its failure for decades to diversify its oil dependent economy. The budget Tebboune approved on Thursday, after it was passed by the two chambers of parliament, forecasts a deficit of 2,700 trillion dinars (around $20.4 billion, 17.6 billion euros), or 14 percent of GDP. Furthermore, its hard currency reserves have dropped from more than 162 billion euros in 2014 to less than 57 billion euros late last year. The president returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget.

Source: The North Africa Journal December 31, 2020 17:03 UTC