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Abu Dhabi, UAEWednesday 19 September 2018

Algeria set to earn more cash from energy exports

Expected income to hit US$31 billion in 2017 against $27.5bn in 2016, says state media

Participants attend the opening session of an International Energy Forum in Algiers. Ryad Kramdi / AFP
Participants attend the opening session of an International Energy Forum in Algiers. Ryad Kramdi / AFP

Algeria's earnings from energy exports are expected to reach US$31 billion in 2017 against $27.5bn in 2016 but down from $60.3bn three years ago, the finance minister Abderrahmane Raouia said, according to the state news agency APS.

Oil and gas revenues are crucial to Opec member Algeria as they make up 60 per cent of the state budget and 95 per cent of total exports.

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A drop in global crude oil prices since mid-2014 has significantly hit the North African country's state finances, pushing the government to cut spending, raise prices for some subsidised products and impose new taxes to secure alternative funding sources.

The fall in energy earnings has also negatively affected the country's foreign exchange reserves, with the government expecting their level to reach $97 billion this year, down from $195bn in 2014.

"This situation strongly restricted the financial capacity of the treasury," APS quoted Mr Raouia as telling parliament.

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