Algeria economic growth up to 2.3%

OPEC member, Algeria’s economy grew 2.3 per cent in 2018, up from 1.4 per cent in 2017 due to higher oil prices, the finance ministry said.
The ministry said that the price of the country’s oil exports last year averaged $72.43 a barrel, against $52.71 in 2017.
The growth was, however, below a four per cent government forecast.
The government expects the economy to expand by 2.6 per cent this year, due to a 1.5 per cent reduction in spending and lower energy revenue projection.
Oil and gas account for 60 per cent of the budget and 94 per cent of total exports revenue.
The North African country also increased state spending for 2018 by 25 per cent, after a 14 per cent cut in 2017.
Algeria has failed for now to develop its non-hydrocarbon sector, which grew four per cent last year, up from 2.2 per cent in 2017, according to the ministry’s figures.
Oil and gas earnings should reach $33.2 billion, down from the $34.37 billion target for 2018, because of growing domestic consumption.
The government is benefiting from a recovery in global crude oil prices but a large proportion of energy revenue is still being used to pay for goods imports due to poor domestic production.