Algeria ends 2016 with $114 bln of foreign reserves – PM

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Algeria's Prime Minister Abdelmalek Sellal attends a Franco-Algerian summit at the Hotel Matignon in Paris, December 4, 2014. REUTERS/Charles Platiau
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By Lamine Chikhi

ALGIERS (Reuters) – Algeria will end 2016 with $114 billion of foreign reserves, but its oil and gas earnings will drop to $27.5 billion from $35.7 in 2015 and $60 billion in 2014, Prime Minister Abdelmalek Sellal told state TV late on Wednesday.

Algeria’s foreign reserves were at $178 billion in 2014.

“Hydrocarbon revenues will reach $27.5 billion in 2016, and $35 billion in 2017, and $45 billion in 2019,” the prime minister forecast.

He also said economic growth would be 3.5 percent in 2016 and 3.9 percent in 2017, with the external debt remaining at $3 billion, or 1.8 percent of gross domestic product.

Algeria will maintain a subsidy system worth $18 billion in 2017, he added. Products such as milk, bread and sugar are subsidised by the state.

“I reassure the Algerians that we will not abandon our subsidy system policy,” the prime minister said.

(Reporting by Lamine Chikhi; Editing by Mark Potter)

 

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