ABU DHABI: Expansion of non-oil businesses is expected to push Algeria’s economic growth above 4 percent next year despite the plunge of global oil prices to five-year lows, Algerian central bank governor Mohammed Laksaci said yesterday. “We hope, expect above 4 percent growth next year. Our potential is really above 5 percent, but over 4 percent is realistic,” Laksaci said. “Non-oil growth is good.”
Gross domestic product is now expected to expand 4 percent this year compared to 2.8 percent last year, Laksaci added. “The private sector is borrowing a lot including the SMEs. This is the second consecutive year of credit growth.”
Total bank credit is projected to expand 20 percent this year compared to 19 percent in 2013 and 15 percent in 2012, Laksaci said, predicting “good growth” for bank profits in 2014. Reuters
