US Financial crisis to have bad impact on Algerian economy in medium term

Energy Minister

US Financial crisis to have bad impact on Algerian economy in medium term

El Khabar, 7 october 2008

The U.S financial crisis will have a bad impact on the Algerian economy in the medium term, said the Minister of Energy and Mines, Mr. Chakib Khelil. He further indicated that the Algerian oil incomes will be maintained at $80 billions during the ongoing year, even if the oil prices will keep dropping because of the financial crisis hitting the States.

According to Mr. Khelil, who paid a visit yesterday to the central province Tipaza, the slumping oil prices in the world market, are owed to the current recession characterizing the US, and European economy, as well as the US financial crisis, which led to the decline of the international demand on oil. This crisis will not have direct repercussions on the Algerian economy, immediately, because both Algerian, and US economies are linked only by oil exports.
In this context, the same speaker added that the Algerian exchange reserves will be maintained at $137 billions, so the major projects launched by the Government, will not be affected by the US financial crisis as the incomes of Algeria, will reach $80 billions by late this year.
Still, the Chairman of the Organization of Petroleum Exporting Countries, OPEC, said the European economy will be seriously affected by the crisis, while it is not clear, yet, whether the Chinese economy will be affected, because oil prices could not be predicted in 2009. Such an issue will be addressed during the OPEC meeting scheduled next December in the Algerian western province Oran.

07-10-2008
By A.H/Translation Section