ECONOMY

Algeria's economic growth rebounds to 4.2% in H1 2021

ALGIERS- The recovery of economic activity in most sectors in 2021, after last year's declines, due to the direct consequences of Covid-19, has boosted Algeria's Gross Domestic Product (GDP), which recorded a substantial growth of 4.2% during the first half of 2021 compared to the same period of 2020.

After a 2% rise in the first quarter and 6.4% in the second, Algeria's economic growth reached 4.2% during the first six months of the current year.

This improvement was achieved thanks to a "strong recovery" in the activities of most sectors, except for agriculture, which experienced a "slight decline" of 0.3% in the second quarter against an increase of 0.6% in the first, according to data provided by the National Statistics Office (ONS).

This economic growth has been primarily driven by the sectors of Oil, Industry, Building-Public Works and Hydraulics (BTPH), including services and oil public works (STPP), market services and non-market services, said the Office.

A constant growth which results especially from "a strong recovery" of economic activities in the sectors of Building - Public Works and Hydraulics (BTPH), including services and oil public works (STPP) with 13.7%, Hydrocarbons (11%), Market Services (10.2%) and Industry (9.3%), added the Office.

The value added of hydrocarbons has strongly contributed to this economic growth.

This improvement was mainly driven by the crude oil and natural gas branches with a hike of 41.2%, according to the same source.

In the second quarter of the current year, market services also contributed to this improvement in GDP, with a rise of 10.2% against 0.4% in the first quarter.

Furthermore, the lifting of lockdown restrictions has enabled the various branches of the sector to record "positive results": hotels, cafés restaurants (+124%), transport and communication (+10.4%), trade and services to households (+10.3%) and services to enterprises (+3.5%).

The increase recorded in terms of Industry, on the other hand, was essentially driven by the value added of energy (+10.5%), iron and steel, metal, mechanical and electrical industries (ISMME+38.9%), building materials (+8.9%), textiles (+9.5%) and agro-food industries (+3%).

The market services, with an increase of 1.3% further contributed to this growth, particular those of public administrations (+1.3%), financial services (1.6%) and real estate business (+2.2%).