Algeria is expected to maintain its economic growth at 3% (4.2% excluding hydrocarbons) in 2015, which means at the same level as in previous years, according to forecasts of the draft Finance Bill 2015, discussed and adopted Tuesday by the Council of Ministers.
"The draft Finance Bill 2015 was calculated on the basis of an overall GDP growth of 3% and a non-hydrocarbon growth of 4.2%," said the statement of the Council of Ministers.
According to the same forecasts, Algeria will manage to maintain GDP growth in 2015 despite the effects of the international economic crisis that plunged many countries into recession.
For 2015, the State will pursue its efforts to maintain growth through public spending. The draft finance bill provides in this sense a capital budget of DZD 3,908 billion, up 43% compared to 2014.
These funds will be used to fund the capital program underway, estimated at DZD 1,600 billion and a new program of 1,100 billion for the areas of Housing, Health, Education, Higher Education, Water, Energy and Vocational Training.
In addition, more than DZD 700 billion are planned for the State’s economic action.
President of the Republic, Abdelaziz Bouteflika said after the meeting of the Council of Minister, "the State’s efforts to support economic growth through government spending, should be further supported by a stronger contribution to the productive sector, including the diversification of exports."
He also instructed the government to accelerate the reform of the banking and financial system that must be completed no later than the end of next year.
Also, the Head of State stressed the need for bank loans to "more effectively" accompany economic development.
Actually, President Bouteflika made a direct appeal to the government to consider the issue of access to bank financing, often raised by the business community as an obstacle to the development of investment in Algeria.
Moreover, the operating budget, which has witnessed since some years annual increases induced by wage increases in the public sector, will not break in 2015 with this uptrend.
The appropriations in this field will amount to DZD 4,969 billion, up 5.4% from 2014, and will allow the creation of 48,000 new job positions in several sectors, the statement of the Council of ministers added.