IMF SAYS ALGERIA’S REVISED INVESTMENT LEGISLATION WILL HELP ATTRACT INVESTMENTS
WASHINGTON, — The revision of Algeria’s law on investment will help the country greater inflows of Foreign Direct Investment (FDI), says the the International Monetary Fund (IMF).
In a new report on the prospects of growth for the Middle-East, North Africa, Afghanistan and Pakistan (Moanap) region, the Fund says countries like Algeria, Saudi Arabia and Qatar, which have updated their investment and labour laws are set to attract more FDI.
Like other oil and gas producing countries, Algeria is expected to experience a jump in FDI inflows after a slowdown in recent years as a result of administrative streamlining and better quality of institutions which will attract more foreign investments, notes the IMF.
It says that these actions have been taken by some oil-producing countries to diversify their economy and develop their private sector, while stressing that reducing iependence on revenue from raw materials takes time.
The IMF also expects that the slowdown in Algeria’s overall growth rate in 2016 will be offset by an increase in natural gas production
According to forecasts by the Fund, Algeria’s real gross domestic product (GDP) growth rate is expected to rise by 3.6 per cent in 2016 and 2.9 per cent in 2017. Inflation should stand at 5.9 percent in 2016 and ease to 4.8 percent next year, according to the IMF.
Source: Nam News Network