COUNTRY WRAP UP : ALGERIA

Highly dependent on hydrocarbons, Algeria’s growth model is based on the redistribution of the country’s oil and gas wealth through a vast public sector. The macroeconomic outlook for the Algerian economy is not promising , with GDP growth prospects being jeopardi z ed by the double whammy of low er oil prices and lower production quotas set by the OPEC supply cuts . The introduction in 2018 of an expansionary budget policy to offset the economy’s structural weaknesses and the fall in oil prices have resulted in the persistence of twin deficits. On the political front, Algeria is currently bogged down in a transition period marked by the confrontation between the army and the population over how to manage the post-Bouteflika era . Having been postponed on several occasions, presidential elections are scheduled for 12 December 2019. Protests, which have been ongoing for 33 weeks, continue to intensify, fuelled by demands for the entire ruling political elite to step down in order to guarantee transparent and free elections.