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Algeria’s economy recovering rapidly— AfDB

Published

4 months ago

August 16, 2024

A country report by the African Development Bank Group (AfDB) which will be formally presented in Algiers in mid-September, has projected Algeria’s GDP growth to be 4.0% in 2024 and 3.7% in 2025.

The projection which suggests rapid growth meant the North African country’s economic recovery is getting stronger; the country’s GDP grew by 3.6% in 2022 and 4.2% in 2023.

The research claims that the construction, industrial, services, and oil and gas industries all contribute to Algeria’s economic growth. The report highlights that employment patterns indicate a shift away from manufacturing and agriculture and towards the services sector.

However, it also notes that the GDP structure has not fundamentally changed and that additional reforms should be implemented to accelerate the structural transformation of the nation’s economy.

According to Mr Lassaad Lachaal, the national manager for Algeria at the African Development Bank, “For Algeria, the reform of the global financial architecture is an opportunity to position itself as a donor country to support progress towards the development programs of other African countries.”

The research shows that Algeria has the chance to establish itself as a donor nation to aid in the development initiatives of other African nations through the reform of the global financial architecture.

Algeria became one of the contributors to the AFD-16 financial cycle of the African Development Fund in 2023. Even with a $1 billion budget set aside for development projects in Africa, the nation will still require more funding to promote climate protection and green growth initiatives.

The Hamma Seawater Desalination Plant of Algerian Energy Company is situated close to the Port of Algiers on the Mediterranean Sea.

Short-term financial resources for Algeria’s structural change might be further enhanced by increasing the sustainability of the public finances and improving domestic financing mobilisation, the document notes.

The research’s theme aligns with the 2024 report titled “Driving Africa’s Transformation – The Reform of the Global Financial Architecture,” which examines the continent-wide African economic outlook.

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Moroccan annual inflation rises to 0.8% in November

Published

17 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”