Algeria's economy began to recover in 2021 with growth of 4.0 percent, following a contraction of 4.9 percent in 2020. Inflation rose to 7.0 percent and the central bank eased monetary policy by reducing the reserve requirement rate from 10 percent to 2 percent and its policy rate from 3.5 percent to 3 percent, and relaxed prudential rules for the banking sector. The current account deficit improved by 5.1 percentage points of GDP in 2021. Increased exports and the IMF's payment of $2.67 billion in 2021 as part of the SDR allocation slowed the decline in reserves (11.1 months of imports at end-2021 versus 12.5 months at end-2020). (Download detailed Analysis Source : Report African Economic Outlook 2022 ; AfDB)
At the end of December 2022, the Algiers stock exchange had 4 listed companies, representing a market capitalization of $0.08 billion. Between 2017-2020, foreign direct investment flows to Algeria have been on an upward trend, then contracted by 24% in 2021, from $1,142.6 million in 2020 to $869.7 million.
