Algeria’s economic growth is one of the most exciting in the world. Writes Ahmed Adel
The Algerian newspaper Al-Shorouk reported that the North African country has officially applied to join the BRICS group (Brazil, Russia, India, China and South Africa). According to the country’s special envoy for international cooperation, Leila Zarrougi, Algeria has submitted a formal request to join the BRICS group.
It is recalled that Algerian President Abdelmadjid Tebboune stated in August that his country was ready to join BRICS, noting that almost all the conditions were in place. Later, the Russian ambassador to the Arab country, Valerian Shuvaev, said that Russia had no objection to Algeria joining BRICS.
Chinese Foreign Minister Wang Yi said in September that Algeria is a “great developing country and a representative of emerging economies.” Wi added that China “is ready to work with Algeria to play a constructive role in achieving global peace and development.”
The North African country has been looking for new economic and political alliances to replace its 2005 Association Agreement with the European Union, which it considers a “failed bet.”
On September 7, Algerian Foreign Minister Ramtane Lamamra stressed that his country wants to join BRICS since it represents an “economic and political power.” He also said that potential membership could “happen fast” and stressed that Algeria “seeks to raise its national income in a way that enables it to join the BRICS group,” noting that it is working to achieve this goal.
The idea of incorporating new members to BRICS has been raised by Beijing since May. The Chinese believe that expansion would help increase the group’s influence, as well as demonstrate its inclusive and open nature. Beyond Algeria, several countries, such as Egypt, Turkey, Saudi Arabia, Argentina and Iran, have expressed their willingness to join or have already submitted formal applications.
According to World Bank data for 2019, the five current members of BRICS represent 42% of the world’s population, 24% of the world’s GDP and more than 16% of global trade. Between 2009 and today, BRICS has managed to increase its coverage of the global GDP to just over 25%. All this will obviously increase as more countries become members.
Tebboune said his government is determined to export $7 billion of non-hydrocarbon products by late 2022. This comes as the World Bank said in early October that developing oil exporters, such as Algeria, are expected to witness an average economic growth of 4.1% this year and 2.7% in 2023.
For their part, the IMF forecasted that the growth rate of Algeria’s GDP will reach 4.7% at the end of 2022, one of the fastest-growing rates in the world. The IMF published an interactive map that divides growth rates into five descending categories, from fastest to slowest. Algeria was placed in the second category, topping the Maghreb and Western Mediterranean regions and was also considered one of the fastest growing in the Arab World.
In the Maghreb, Morocco was projected by the IMF to reach 0.8%, Tunisia 2.2%, Libya -18.5%, and Mauritania 4%. In the entire Western Mediterranean region, Algeria also topped Italy’s 3.2%, France’s 2.5%, and Spain’s 4.3%. Algeria was placed by the IMF to be among the six Arab economies that will record the highest growth rates in the mentioned period. According to the IMF’s World Economic Outlook, Algeria’s projected achievement of 4.7% by the end of the current year would rank the country second in North Africa after Egypt (6.6%).
Algerian economics specialist Ezz El Din Dedan said the Arab country “was able to control economic indices over the past three years, despite the collapse of energy prices.” He pointed out that “with the recent recovery of oil and energy prices globally amid the war in Ukraine, there is a significant increase in Algeria’s foreign exchange earnings, and this is what gives the country a margin of greater financial movement in economic decision-making.”
By joining BRICS, Algeria will further strengthen its economy by having greater opportunities to engage in trade with the world’s two most populated countries, India and China, as well as other important economic players like Russia, Brazil and South Africa, and perhaps even other future member states, such as Egypt, Saudi Arabia, Turkey, Iran and Argentina. Algeria feels confident it can balance its relations with the West, but also recognizes that important financial centres are emerging all over the world, and are not solely in Europe and North America anymore. The North African country hopes to exploit these new opportunities.
