Algeria shakes up economy as oil prices plummet
This is a lengthy article-highlight only the relevant economic portions.
The article reports the challenges faced by Algerian Economy because of the steeply falling global oil prices. 90% of Algerian exports are of that of Hydrocarbons, which have fallen to 1/3 of the value since 2014. With almost absent domestic Industries and Inelastic nature of Imports, Algeria is facing huge drain of its foreign currency surpluses/reserves while experiencing a current account deficit.
Topics include Balance of Payments, Current Account Deficit, Terms of Trade and Marshall Lerner conditions with diagrams and formulae.
Evaluation will cover various strategies to preserve Foreign Exchange reserves, tackle the current account deficit, Balance of Payments and pressures on Exchange Rate and future International Trade. Also discuss the impact on the Consumers, Domestic producers (public companies in this case) and Government in short term and long term.