CRACKS APPEAR IN THE ALGERIAN ECONOMY

摘要

Algeria's economy has been stretched to breaking point by the coronavirus crisis. The country - the 10th most pop-ulous in Africa - had the continent's fifth-highest caseload as of mid-July. Faced with fresh outbreaks of the Delta variant of the virus, the government has extended lockdowns in 14 of the country's 58 provinces, including the capital Algiers, until early August. The crisis has brutally exposed Algeria's failure to pass much-needed reforms. Its state-dominated economy remains heavily reliant on oil and gas revenues, the steady decline of which has depleted foreign currency reserves to dangerously low levels. Lower government revenues have, in turn, prompted a wave of bankruptcies across the economy and seen unemployment rise. Anger over unemployment was a key factor in the 2019 'Hirak' movement - also known as the 'Revolution of Smiles' - an uprising that saw president Abdelaziz Bouteflika ousted after 20 years in power. However, hopes for significant reform from a new regime led by Abdelmadjid Tebboune, elected as president in December 2019, remain low, as evidenced by poor turnouts in subsequent elections.