Ministry of Higher Education and Scientific Research

National Poltytechnic School of Costantine –ENPC-

Preparatory Class Department
Semester 1 : 2023/2024
HOMEWORK 1 :Introduction of economic

FIRST NAME : HACIB / LAST NAME : Houda / GROUP : 11

INTRODUCTION :
Economic growth represents one of the most important and exciting economic fields ;as recent years have
witnessed an explosion of research on the factors of economic growth ; and we find Algeria is one of
those countries that are working to improve its economy by diversifying its sources beyond hydrocarbons
sector in odrer to sweep the world market.

INDICATEURS FOR A NUMBER OF ECONIMIC VARIABLE :

The economy of any country is controlled by a set of indicators that indicators that indicate the exent of
its development ; in Algeria ;for exemple ;we find among its economic indicators : Gross domestic
product ; Inflation rate ;Trade balance ;State budget ; Umployment rate……

1.Gross Domestic Product :

The gross domestic product in current prices in Algeria was forecast to continuously incease between
2023 and 2028 by in total 38.7 billion U.S.dollars .After the eight conceculative increasing year ;the GDP is
estimated to reach 262.8 billion U.S.dollars and therfore a new peak in 2028 .

This indicator describe the gross domestic product at current prices ; consistent with the definition given
by the international Monetry Funds . the GDP represent the total value of final goods and services
produced during a year .
2.INFLATION RATES :
The average inflation rate of Algeria was forecast to continuosly decrease between 2023 and 2028 by in
total 3.8 percentage points . According to this forscast in 2028 ; the average inflation rate will have
decreased for the sixth consecutive year to 5.19 percent.

The international Monetary Funds describes this indicators as a measure of inflation based upon the year
on year change in the average consumer price index . The latter expresses a country is average level of
prices bassed on a typical basket of consumer goods and services.

3.TRADE BALANCE :
The statistic shows Algeria is trade balance of goods from 2012 to 2022 .Trade balance is the value of
exported goods minus the value of imported goods .Apositive trade balance signifies a trade
 surplus ;while a negative value signifies a trade defici . in 2022 Algeria is trade surplus amounted to
around 21.92 billion U.S.dollars.

4.UNPLOYMENT RATE :
The unployment rate in Algeria declined to 11.55 percent in 2022. Nevertheless ;the last two years
recorded a significant higher unemployment rate than the preceding years.

The unemployment rate refers to the share of economically active population currently without
work but in search of employment .the unemployment rate does not include economicaly
inactive person such as long –term unemployerd ;chidren or retrees.

5.STATE BUDGET :
 The budget balance in relation to the gross domistic product in Algeria was forecast to continuously
increase between 2023 and 2028 by in total 0.1 percentage points .

The indicator describe the general goverment net lending/borrowing which is calculated as revenue
minus total expenditure.The general goverment revenue consi sts of the revenue from taxes ; social
contribution ; grants receivable and other revenue.

CONCLUSION :
The conclusion we have reached through our study of the sources of economic growth in
Algeria is that inverstment is the main determinant and the only positive contributor to
economic growth in Algeria .
Algeria is dependence on hydrocarbon exports hindered the growth of its per capital GDP during the
study period .so it may be better to look for aways to diversify its exports and move away from
dependance on one commodity .Economic policier should be designed to encourage exports outside the
hydrocarbons sector and mitigate any obstacles to them promoting compitative goods in international
markerts may help in this way .