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

Abstract

The correlation between the achievement of development in Algeria andunstable oil resources due to the dominance of the hydrocarbon sector, whichrepresents 60% of the general budget and about 40% as a contribution to theGDP turnover shows the fragility of the economy, as an economy of singleproduction and resource, and given the scale of the financial resources of oil,especially in the period 2000-2014, and despite the improvement inperformance of the Algerian economy in terms of achieving internal andexternal macroeconomic balances, but it was momentary and did not contributeto stimulate growth and create conditions for economic take-off. Theimprovement of these effects has required the allocation of large sums of moneywithout creating productive sectors of value added. In the light of theinstability, the question of the need to work to reduce the degree of dependenceon the oil sector and to activate non-oil sources of income as an inevitablenecessity to achieve development is asked.