Economics Affairs

Babaammi: IMF, WB's predictions on Algeria's growth "are not very realistic"

APS - 24 April 2017

WASHINGTON (U.S.A)- Minister of Finances Hadji Babaammi said Sunday, in Washington, that the recent predictions of the International Monetary Fund (IMF) and the World Bank (WB) on the growth of the Algerian economy “are not very realistic.”

“The predictions of the IMF and the WB are not very realistic because they do not take into account all of the country’s economic reality,” Babaammi told APS at the end of his participation in the spring meetings of these two multilateral financial institutions.

The minister of finances explained that these predictions are based on a reduction of equipment spending, one of the engines of economic growth in Algeria, while the level of these spending will remain at a high level in 2017 and for the three upcoming years.

Quoting figures, the minister said that spending equipments increased from DZD2,500 billion in 2014 to DZD3,100 billion in 2015, and they slightly dropped to DZD2,800 billion in 2016.

It also important to underline that the effects of the expenditure of 2016 in terms of growth should continue in 2017, said the minister, adding that this level of spending gives enterprises a sufficient work load schedule that will allow them to continue working and creating wealth.

Consequently, state orders will remain at a high level of DZD2,300 billion for the three upcoming years, he said.