Economic and Commercial Report for the Month of May, 2008
The Statistics below are the latest published by the Govt. of Algeria
i) According to media reports total GDP for the year 2007 was approximately US$ 135 billion.
ii) Algeria's consumer price inflation went from 4.4% in January 2008 to 4.9% in February 2008 due in large part to rising food prices, Algeria's National Statistics Office announced. Food prices rose by 7.8% in February, up from 7% in January. The prices of potatoes declined significantly in February but the price of other foods items including flour, powdered milk and cooking oil rose by an average of 50%. Government controls on fuel prices have helped control inflation in non-food products.
iii) Total trade during Jan-March 2008 : US$ 26.45 billion
Export during Jan-March 2008 : US$ 18.73 billion
Import during Jan-March 2008 : US$ 7.72 billion
Balance during Jan-March 2008 : US$ 11.01 billion
iv) Total trade in US$ and its growth:
1) Exports during Jan-June 2008 2) Imports during Jan-June 2008
Name of the country
Value in US$
Name of the country
Value in US$
USA
3850
France
1290
Italy
2990
Italy
765
Spain
1400
China
626
France
1200
USA
582
Netherlands
1090
Germany
528
Canada
1070
Spain
442
Turkey
820
Argentina
381
v) Total trade with India during the first four months of 2008 :US$ 379.414 million
Export to India during the first four months of 2008 :US$ 150.020 million
Import from India during the first four months of 2008 :US$ 229.394 million
Total trade with India during the first four months of 2007 :US$ 516.574 million
Export to India during the first four months of 2007 : US$ 369.168 million
Import from India during the first four months of 2007 : US$ 147.406 million
Information on trade growth with India by top 10 commodities: New figures are not yet available
vi) Total trade in US$ and its growth in trade in services: Not yet available.
vii) Major investments within and outside the country:
The National Agency for Development of Investment (ANDI) foresees an increase of US$ 10 billion in foreign investment in Algeria by the end of the year. According to Director General of ANDI, investments in Algeria have increased from 2006 to 2007 and that the number of investment projects, which were 5000 in 2006 rose to 12,000 in 2007. Investment projects finalized and in the process of finalization during first half of 2008 are given below.
In order to increase its energy, Algeria is likely to invest over US$ 45 billion within next 5 years. She intends to boost its oil production to 2 million barrels per day and its gas production to 85 million 3m respectively.
Regarding direct Arab investments in Algeria, Egypt tops the list of Arab countries with app. US$ 84 billion in some 27 projects, followed by the United Arab Emirates with app. US$ 50 billion in 5 projects. According to figures provided by the National Agency of Investment Development (ANDI), Kuwait investments came to app. US$ 23 billion in two projects. A considerable number of Arab investment projects are currently under negotiation, particularly with the Emirati group EMAAR, which intends to achieve several projects, including the redevelopment of the Bay of Algiers, as well as the "ALQUDRA" group and Dubai Aluminium Company "DUBAL" which are investing in aluminium industry.
Truck assembly plant of China will be shortly be built in the city of Biskra (425km south of Algiers), announced the manager of Algerian company representing Chinese firm Sinotruck in Algeria. This project will be part of the partnership agreement signed between Chinese company and Algerian industrial firm Amouri.
A project of hybrid plant in Hassi R'mel is being carried out in partnership with Spain. It includes Sonatrach, Sonelgaz and a Spanish partner. The New Energy Algeria, a subsidiary of Sonatrach is involved in this project.
On 14.5.2008 Sonatrach announced the discovery of hydrocarbons in In Salah. This discovery was done by Sonatrach after a drilling in the well of TC2 (TIRECHOUMINE-2) in the perimeter of Ahnet (Bloc 337 b). With this new discovery, the number of discoveries done by Sonatrach alone has reached three and three others have been done by Sonatrach in association with other companies since the beginning of 2008.
The overall volume of Algerian hydrocarbon exports is estimated to 48 million tons at the end of April 2008, whereas it was 47.2 for the same period in 2007.
Exports of hydrocarbons reached US$ 32.10 billion (97.87%) from January to May 2008. Algerian Minister of Energy and Mines said that oil revenues of Algeria could reach $ 80 billion at the end of 2008. This amount could be reached if oil prices remain at their current level. Regarding non-hydrocarbon exports they represent only 2.12% of global volume of exports.
viii) India’s investments interests: As Algeria is seeking large investments in various sectors, prospects for Indian investments in Algeria are good particularly in the sectors of hydrocarbons, infrastructure, information and communication technologies, pharmaceuticals, power, food processing, milk powder, textiles, leather, mining (mainly phosphate) etc.
x) Agreements signed/pending which some way or the other relate to trade between the two countries:
Agreements signed
Agreements pending
1- Double taxation avoidance Agreement signed in January 2001
1- Bilateral Investment Promotion Agreement.
2- Phytosanitary agreement signed in January 2001
2- Agreement on Science & Technology
3- Veterinary Sanitation Protocol signed in January 2001
3- Agreement between Indian Council for Agricultural Research and INARA(National Institute of Agricultural Research of Algeria)
4- Agreement on cooperation in SMEs signed in October 2003
4- Agreement on drug standards and mutual cooperation between Central Drugs Standards Central Organization (CDSCO) and Algerian National Laboratory of Pharmaceutical Products Control (LNCPP) .
5- Air services agreement (signed in English only)
5- Maritime agreement
6-Trade agreement
7- MOU on information technology
Principal five export destinations : USA, Italy, Spain, France, Canada.
xi) Principal five import sources : France, Italy, USA, China, Germany.
xii) There are no major export items except hydrocarbons whose export constitutes approximately 98% of total Algerian export. Other export items include phosphate, iron ore, semi finished products, raw material, food items, industrial equipments etc.
xiii) Principal five import items: foodstuff, automobiles/auto parts, pharmaceuticals, engineering items, and consumer products.
Although India does export and import many of the above items but it is not among the top five countries.
xiv) Top five items of export from India to Algeria: Automobiles/auto parts, pharmaceuticals, textiles, cosmetics, light engineering items and food items/milk products etc.
Top five import item from Algeria to India: Petroleum, natural gas, lubricants, phosphate and minerals/metals .
xv) India has very good chance for enlargement in market share of the above items if the present trend of the two-way trade continues as overall bilateral trade has increased considerably from US$ 55 million in 2001 to US$ 1.4 billion in 2007.
Source: Commercial Section,
Embassy of India, Algiers
TRADE INDIA MAIL
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