The impact of oil resources on the macroeconomic variables of the Algerian economy

Abstract

The correlation between the achievement of development in Algeria and
unstable oil resources due to the dominance of the hydrocarbon sector, which
represents 60% of the general budget and about 40% as a contribution to the
GDP turnover shows the fragility of the economy, as an economy of single
production and resource, and given the scale of the financial resources of oil,
especially in the period 2000-2014, and despite the improvement in
performance of the Algerian economy in terms of achieving internal and
external macroeconomic balances, but it was momentary and did not contribute
to stimulate growth and create conditions for economic take-off. The
improvement of these effects has required the allocation of large sums of money
without creating productive sectors of value added. In the light of the
instability, the question of the need to work to reduce the degree of dependence
on the oil sector and to activate non-oil sources of income as an inevitable
necessity to achieve development is asked.