Economic resilience and structural reforms in Algeria

Abstract

This article aims to study the multiple vulnerabilities which characterize the Algerian economy, and to explain how these vulnerabilities reduce the country’s resilience to external shocks. Once the weaknesses are identified, key structural reforms will be proposed. Using a literary review on economic resilience and empirical data, we will highlight, through figures, the country’s strong dependence on gas and oil resources, whose revenues are heavily subject to the global market. Then, we will show how the recurring budget deficits and the wastefulness that characterize the public governance reduce the efficiency of State action and thus consequently reduce the resilience of the national economy. Ultimately, we will examine the main structural reforms that need to be implemented to reinforce the country’s resilience and economic growth.