Economic machinery is struggling to recover (analysis)

AA / Algiers / Aksil Ouali

High living costs, the impact of international market volatility, the difficulty of resuming economic machinery … Algeria began in 2022 with a dizzying rise in consumer prices, forcing authorities to stop “until further notice” in mid-February. it was done. The application of taxes stipulated by the just-enforced financial law.

The decision, announced by President Abdelmadjid Tebboune, concerns “importing certain foods, mobile phones and computer equipment for personal use.” In addition, the head of state of Algeria announced the payment of an unemployment allowance of 13,000 DA ($ 90) for the unemployed (19-40 years old) from this month in March. The dignity of the citizens of this category. “

These measures have been announced in a situation characterized by soaring prices of consumer products, which are having a significant impact on households. Perhaps in anticipation of possible social dissatisfaction, Algerian authorities reviewed the card at the economic level. But justification is by advancing “fluctuations in the global market and soaring prices of imported raw materials.” Is that the only cause? Why is the Algerian economy struggling to get going?

“The consumer price index rose 9.2% year-on-year and peaked since 2012,” the World Bank said in a report disputed by the Algerian government last December. Prepared a report to be done. situation.

“The Algerian economy is extroverted, and rising prices for many basic imported commodities and rising shipping rates constitute other factors that pose an inflation risk. Finally, the sharp fall in the Dinard against the dollar and euro. Contributed to making most imported goods more expensive.


For economists, “It’s clear that a significant rise in prices will allow us to buy fewer products, thus losing the purchasing power of both homes and businesses.” In this sense, he proposes to implement other measures “against the inflation spiral.”

“Recently, the measures taken by public institutions on income (reducing IRG and revising the value of civil servant salary indicators) are part of the logic of catching up with purchasing power in some way, freefall, especially in the international market. This remains clearly inadequate when limited to these actions, especially as inflation continues to rise in the context of the European military crisis, so before inflation takes the form of an uncontrollable spiral. We need to adopt a set of measures to combat inflation, “he recommends.

The effects of this inflation are strongly felt by Algerian households. Price increases affected virtually all products, with price increases on the order of 40-60%. They affected both fresh foods (vegetables, fruits, meats) and other staple foods such as pasta and canned foods.

“For months, I couldn’t buy the same amount of product I had previously allowed for 1000 DA ($ 7). My daily cost was without filling my basket. It’s over 2000 DA, “declares to the retired Anador Hassan Agency, a 60-year-old civil servant I met at the Alger Center. The man receives a monthly pension of $ 30,000 ($ 211) and asserts that “the value of the pension has dropped significantly because I had a hard time ending the month.”

This observation of Algerian purchasing power decline is confirmed in a recent study by the Association on Consumer Protection and Consumer and its Environmental Direction (APOCE). The latter demands a minimum wage of 80,000 DA ($ 560) to guarantee the dignified life of Algerian workers. Currently in Algeria, the guaranteed minimum wage (Smig) is 20,000 DA ($ 134).

-Teboon promises to “release the initiative”

Why is the country suffering from this spiral? Why is the economy struggling to recover? Since taking office in December 2019, President Theboon has continued to criticize the economic situation of countries that are 95% dependent on hydrocarbon exports. After that, he promises “change”. In a statement in early January last year, he stated that “2022 will be the year of economic takeoff” and “his commitment to liberate initiatives” in various areas of the economy.

This optimism is not shared by opposition parties. “At the socio-economic level, the situation continues to be dangerously deteriorating, and all sections of the population are in dire and uncertainties,” said the Rally for Culture and Democracy (RCD) in a press release released last Friday. ) Said.

Abdelamane Mebutor, a professor of economics, continues to warn of the “economic collapse of the country” through his numerous contributions in the local press. “As for the positive potential of the 2021 trade balance, it has limited implications, with the number of blocked projects whose realization would have resulted in a trade deficit at the end of 2021. Indicates.

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