Algeria Facts and Figures

Located in North Africa, Algeria is the largest country on the continent, covering an expansive landmass of over 2.38 million square kilometers. Its capital city, Algiers, serves as the political and economic hub, situated along the Mediterranean coastline. Algeria boasts a rich cultural heritage, with influences from Berber, Arab, and French traditions. As a member of the United Nations since 1962 and the Arab League since 1969, Algeria actively participates in international affairs, contributing to peacekeeping missions and diplomatic efforts worldwide. Impressively, it has also joined the African Union, the Organization of Petroleum Exporting Countries (OPEC), and the Organization of Arab Petroleum Exporting Countries (OAPEC), reflecting its significance in both regional and global arenas.

Historical and Transformative Events

The most transformative event was the War of Independence from France, which lasted from 1954 to 1962. This struggle for sovereignty resulted in Algeria gaining its independence and marked a pivotal moment in its history. Subsequently, the nationalization of key industries, including oil and gas, played a crucial role in shaping Algeria's economy, leading to substantial growth and development. However, internal political conflicts and economic challenges have also punctuated its history, such as the civil unrest in the 1990s, which had profound impacts on the country's stability and governance structures.

Demographic Profile

Algeria, with a population of 45.6 million as of 2023, exhibits a low population density of 19 people per square kilometer. The working-age population constitutes 63% of the total, suggesting a robust labor force potential. The median age of 28 years (in 2024) indicates a youthful demographic, prompting investments in education and employment opportunities. A life expectancy at birth of 77 years (as of 2022) reflects improvements in healthcare. With a population growth rate of 1.6% (in 2022) and a fertility rate of 2.8, Algeria faces moderate demographic shifts. The crude death rate stands at 4.3 per 1,000 persons, with an infant mortality rate of 18.7 per 1,000 live births, highlighting ongoing health challenges. Urbanization continues to rise at 74.8% (in 2022), reshaping socio-economic landscapes.

Economic Overview

Algeria's economy, with a total gross domestic product (GDP) of $195 billion in 2022, ranks 55th globally. Reflecting a steady growth rate of 3.2% in 2022, the nation has shown resilience despite economic challenges. However, the inflation rate, peaking at 9.3% in 2023, poses concerns, although it slightly decreased from 7.2% in 2021. Importing goods worth $41,849 million and exporting $51,799 million in 2023, Algeria maintains a positive trade balance of $9.95 billion. Yet, the unemployment rate, standing at 11.2% in 2015 and 10.2% in 2016, remains a persistent issue. Agriculture contributes 11.6% to the GDP, while industry, mainly manufacturing, constitutes a significant portion at 45.9%. Services sector, representing 38.6% of the GDP, also plays a crucial role in Algeria's economic landscape. Market research in Algeria is essential to understanding these dynamics, identifying opportunities, and addressing challenges within its diverse economic sectors.

Fiscal Stability

The net official development assistance (ODA) received, standing at 0.4% of gross national income (GNI) in 2022, signals a modest but consistent influx of external support. However, the overall balance, a crucial metric measuring net lending or borrowing as a percentage of GDP, experienced a slight deficit in 2023 at -1.61%, contrasting with a surplus of 0.26% in the previous year. This fluctuation suggests a nuanced trajectory in managing fiscal resources. Despite this, Algeria maintains relatively low levels of general government debt, amounting to 37.09% of GDP in 2022. However, the central government debt, which reached 38.72% of GDP in 2021 from 32.46% in 2010, indicates a notable increase over the past decade, possibly influenced by internal economic dynamics or external factors.

Military Overview

Algeria maintains a sizable military force, with approximately 130,000 personnel as of 2016, reflecting a commitment to national defense. This represents about 0.32% of the total population, indicating a significant proportion of the workforce dedicated to military service. The country allocates a substantial portion of its gross domestic product (GDP) to military spending, with expenditures amounting to 4.8% in 2022.

Conclusion

Algeria, with its diverse population, energy-rich economy, expanding digital landscape, robust military, and complex political history, presents a unique market for businesses and investors. To navigate this multifaceted environment successfully, it is essential to have a thorough understanding of the country's dynamics. Partnering with a reputable market research agency in Algeria can provide valuable insights and guidance to help companies make informed decisions and capitalize on the opportunities present in this growing market.