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).
01 Mar 2021
Algeria: 2021 finance law announces fiscal measures and imposes additional import restrictions
Event On 31 December 2020, President Tebboune approved the finance law for 2021. The law introduces several measures to improve public finances, ...