Economic And Political Risks Of Algeria - 1577 Words

Algeria is a CRT-5 country with high levels of economic and political risk and very high financial system risk. In terms of economics high oil revenue declined over 45% in first quarter of 2015. This then led to state spending cuts and delay of surplus of state funded projects contributing to the limit of revenue shortfall. The unemployment rate is also high at 10% contributing to the instability of the economic financials. Politically the risks are high due to large scale labor strikes, due to inadequate housing, high unemployment rates. Budget cuts will continue to contribute to this issue. The local boarders are shared with Mali, Tunisia, and Libya therefore terrorism is a problematic concern. They are unable to secure the desert boarders specifically with Al-Qaeda being less than 75 miles from Algiers. Financially the insurance industry is Algeria is regulated by Direction des Assurances under the treasury of the Ministry of Finance. The IMF concluded in Algeria’s June 2014 Financial System Stability Assessment that there were no pressing financial stability concerns given the country’s small size, significant state ownership and its limited integration into international financial markets. State-owned companies continue to dominate the financial sector, both banking and insurance. Progress towards privatization has been stalled in light of global financial conditions, muted investor appetite and regional unrest. The business operating environment remains challengingShow MoreRelatedAlgeria s Institutional Framework And The Country s Challenging Business Environment2422 Words   |  10 PagesIntroduction With 39.21 million inhabitants and a Gross Domestic Product of $210.2 billion in 2013, Algeria is the 8th most populous country and has the 4th largest economy within the African Continent. 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