ALGIERS, 27 January 2021 – Algeria’s revenue from oil exports plummeted 40 percent in 2020, compared to 2019, according to data published Monday.
“The overall volume of hydrocarbon exports reached 82.2 million tonnes of oil equivalent in 2020, worth $20 billion, down 11 percent (for production) and down 40 percent (for revenue) compared to 2019,” data from Algeria’s ministry of hydrocarbons shows.
A combination of weak global demand and low oil prices is partly to blame for the fall in revenue.
The International Monetary Fund (IMF) says it expects Algeria, which relies on the sale of hydrocarbons for 60 percent of revenue to its budget, will experience one of the highest budget deficits in the Maghreb region in 2021, despite forcecasts that oil prices will recover.
Algeria’s foreign exchange reserves are projected to fall to less than $47 billion in 2021, before a gradual recovery over the next two years, according to the IMF cited Tuesday by the state-owned Algerian Press Service (APS).
Just before global oil prices started to fall in 2014, Algeria’s foreign exchange reserves stood at $178 billion and the country was granting debt forgiveness to poorer African countries
Algeria is Africa’s fourth-largest economy after Nigria, South Africa and Egypt.