Algeria - Economic sectors

Algeria's low-to medium-size economy is heavily dependent on natural gas and hydrocarbons, which account for about 95 percent of export earnings, 52 percent of budget revenues, and 25 percent of GDP. The industrial sector is the largest contributor to the economy, accounting for 51 percent of GDP and employing 13.6 percent of the labor force. The sector is dominated by oil-related industries. Other light industries can also be found, but their contribution to GDP is modest. The services sector is the second largest economic sector, accounting for 37 percent of GDP and employing 13.5

Country Newspapers Radios TV Sets a Cable subscribers a Mobile Phones a Fax Machines a Personal Computers a Internet Hosts b Internet Users b
1996 1997 1998 1998 1998 1998 1998 1999 1999
Algeria 38 241 105 0.0 1 0.2 4.2 0.01 20
United States 215 2,146 847 244.3 256 78.4 458.6 1,508.77 74,100
Nigeria 24 223 66 N/A 0 N/A 5.7 0.00 100
Libya 14 233 126 0.0 3 N/A N/A 0.00 7
a Data are from International Telecommunication Union, World Telecommunication Development Report 1999and are per 1,000 people.
b Data are from the Internet Software Consortium ( ) and are per 10,000 people.
SOURCE : World Bank. World Development Indicators 2000.

percent of the labor force. The agricultural sector contributes 11-12 percent of GDP annually and employs some 22 percent of the labor force. The sector, however, has been vulnerable to adverse weather conditions, and production has fluctuated accordingly.

Two of the greatest obstacles to growth in all of Algeria's economy are inefficiency in the state-controlled public sector and the state's central role in the economy. Recognizing these obstacles, Algeria has targeted certain sectors, mainly state-owned enterprises, for privatization. Years of inefficient state control over the economy have

finally given way to reform. The government has embarked on an ambitious restructuring program coordinated with the IMF and its successful implementation is one of the main challenges facing the government in 2001.

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