Plummeting oil prices since 2014 have resulted in sharply deteriorating economic fundamentals in Algeria and inspired a downgrade of the short-term political risk classification to category 3 (from 2) in January 2016. Since then, there has been a rebound in oil prices, which has led to a narrowing current-account deficit and eased pressure on the rapidly declining foreign exchange reserves. Moreover, the country is preparing to speed up the diversification of its oil-reliant economy as illustrated by the new investment law and the finance law for 2017. As such, Credendo Group judges that the time is right to upgrade the short-term political risk classification to category 2 (from 3).
13 May 2020
MENA region: Two shocks at once put severe liquidity pressure on oil exporters with limited buffers
In January this year, the outlook for the MENA region was one of continued economic growth, albeit at a subdued rate in most countries. The average ...