The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the seventh-largest reserves of natural gas in the world and is the second-largest gas exporter, it ranks 14th in oil reserves. Sustained high oil prices in recent years, along with macroeconomic policy reforms have helped improve Algeria's financial and macroeconomic indicators. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Real GDP has risen due to higher oil output and increased government spending.
The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector. The macroeconomic situation has improved and the last figures published related to 2005 give:
-Growth rate : 5.1% ,
-GDP : 101 billion USD,
-GDP per capita : 3100 USD
-Inflation rate : 1.6%
-International reserves : 62 billion USD
-External debt : 13.9 billion USD
A huge program of support to the economic re launch has been launched for an amount of 80 billions USD over five years (2005-2009) including many huge infrastructural, housing and water projects, education…while many reforms are conducted in the financial and banking system to improve its capacities. These reforms include privatizations and partnership operations which involved till 2005, 238 public companies sold to private sector including 31 companies sold to foreign private sector in agro based industry, chemicals, electronics, mining, and building materials.
The global amount of the investment during the year 2005 was 16 billion USD:
-9.7 Billion USD as State investment (more than 60%)
-3.5 Billion USD by the National privet sector
-more than 2.8 Billion USD by Foreign investors