Low Oil prices still Widen Algeria’s trade deficit
Algeria’s trade deficit increased to US$15.8 billion in 2016 as of october, from US$13.7 billion as of october 2015, with persisting low oil costs weighing heavily on the country’s export revenues.
The depressed worth of crude oil, that accounts for 95 % of Algeria’s exports, has been badly battering Algeria’s economy over the past 2 years, in step with publisher africa Business Communities. On the other hand, imports have also decreased on the back of the government’s austerity measures and import quotas adopted to counter the loss of export revenues from oil.
Algeria’s total export revenues went down by 23.44 % annually at the end of last month, to US$22.7 billion. the worth of imports decreased to US$38.5 billion as of end-October from US$43.5 billion in october last year.
The Algerian government is currently trying to push a budget for next year envisaging higher taxes, higher gasoline prices, and a freeze publicly sector salaries, however has been facing stiff opposition from the general public sector and non-ruling parties.
The falling oil revenues and rising economic woes place opec} member algeria during a position to desperately look for and work for the cartel to reach a deal on production cuts next week. Algeria, alongside venezuela and Qatar, is one in every of the smaller members that are leading shuttle diplomacy efforts to do to bring the largest 3 – saudi arabia, iraq and iran – on the same page concerning output cuts. Unsuccessfully, therefore it seems, at least for currently.
Just yesterday - Reuters reported, quoting opec sources – that algeria offered to opec’s High-Level Technical Committee on tuesday that each one OPEC members except nigeria and libya cut between 4 % and 4.5 % from their october production, supported OPEC’s estimates.
Iran and iraq, however, again questioned their contribution to potential cuts, that resulted in yet another stalemate within the talks. seemingly as a results of this pushback, opec has deferred the decision on iraq and iran for november thirty, according to Bloomberg.