section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Algeria's currency is the dinar (DZD). The economy remains dominated by the state, a legacy of the country's socialist post-independence development model. On June, 2024 The World Bank's 2024 report marks a turning point for Algeria, which joins the select club of upper-middle-income countries. This economic rise, the result of an ambitious development strategy, places the country in the same category as emerging powers such as China, Brazil and Turkey In recent years, the Algerian government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy. These restrictions are just starting to be lifted off recently although questions about Algeria's slowly-diversifying economy remain.
  
  Algeria has struggled to develop industries outside hydrocarbons in part because of high costs and an inert state bureaucracy. The government's efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector have done little to reduce high youth unemployment rates or to address housing shortages. The country is facing a number of short-term and medium-term problems, including the need to diversify the economy, strengthen political, economic and financial reforms, improve the business climate and reduce inequalities among regions.
  
  A wave of economic protests in February and March 2011 prompted the Algerian government to offer more than $23 billion in public grants and retroactive salary and benefit increases. Public spending has increased by 27% annually during the past five years. The 2010–14 public-investment programme will cost US$286 billion, 40% of which will go to human development.
  
  Thanks to strong hydrocarbon revenues, Algeria has a cushion of $173 billion in foreign currency reserves and a large hydrocarbon stabilisation fund. In addition, Algeria's external debt is extremely low at about 2% of GDP. The economy remains very dependent on hydrocarbon wealth, and, despite high foreign exchange reserves (US$178 billion, equivalent to three years of imports), current expenditure growth makes Algeria's budget more vulnerable to the risk of prolonged lower hydrocarbon revenues.
  
  Algeria has not joined the WTO, despite several years of negotiations but is a member of the Greater Arab Free Trade Area, the African Continental Free Trade Area, and has an association agreement with the European Union.
  
  Turkish direct investments have accelerated in Algeria, with total value reaching $5 billion. As of 2022, the number of Turkish companies present in Algeria has reached 1,400. In 2020, despite the pandemic, more than 130 Turkish companies were created in Algeria.