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During a press conference held yesterday in Algiers, The delegation’s head, Mr. Dominiko Vanista mentioned that Algeria’s general index remains positive as non-hydrocarbon growth rate is likely to reach 6% later 2007. Mr. Vanista underscored further that “the fiscal position remains strong thanks to the high level of hydrocarbon revenues, which have boosted the Hydrocarbon Stabilization Fund.” However, Mr. Vanista indicated that continued prudent monetary policy is likely to keep inflation at around 4 %; while non-hydrocarbon budget deficit is expected to widen as a result of the public investment program. “These favourable developments should continue in 2008”, said Mr. Vanista. In turns, despite the aforementioned positive general index, IMF called the government implicitly to rationalize public spending and make it more efficient in order to diversify sources of revenue mostly as the country is still dependent on oil and gas revenues. The International Fund has also called Algeria to pursue its economic reforms; boost enterprises’ productivity as well as support the merging private sector. To recall, an IMF mission composed of officials and experts, led by Dominico Fanizzi, Chief of mission for Algeria, has been in Algiers during November 4 - 21. A report on the consultation will be prepared by staff for discussion by the IMF’s Executive Board in early 2008. | ||||||||||||||||||
The IMF criticises Algeria’s public spending exceed