Algeria has witnessed political shifts with the appointment of Prime Minister Aymen Benabderrahmane, a seasoned economist, in June 2021. The new administration demonstrated a readiness to sever ties with European partners opposing Algeria’s regional interests, leading to a decline in credibility among long-term allies. Concurrently, there are persisting restrictions on freedom of speech, accompanied by a surge in arbitrary arrests of journalists.
Economically, Algeria continues to rebound from the COVID-19 pandemic and the Hirak protests. Oil production has returned to pre-pandemic levels and external balances improved due to higher global hydrocarbon prices. While the service sector and agricultural activity also experienced a resurgence, inflation remains high.
The Finance Law 2021 aims to stimulate economic growth by allowing more flexibility in foreign participation. In addition, the government has invested in the construction industry and infrastructure. The decision to shift the primary foreign language in schools from French to English signaled a significant departure from historical ties with France. The key priority for the current military-backed government is the stability of the country.
