The Algerian economy has shown very good performances in 2004 ( growth of 5.2% of the GDP in 2004) and was more moderate in 2005 ( a 4.8% growth of the GDP according to the IMF). The IMF forecasts a 5.3% growth in 2006. The economy mainly relies on the hydrocarbons sector : petroleum (the state-owned compagny Sonatrach is the 12th largest productor in the world in 2004) and gas : Algeria is the 4th largest producer of natural gas in the world. In a high international oil prices context, hydrocarbons exports (97.2% of the total export earnings) have helped the country maintain a balance in its public accounts and reduce its external debt (the debt service now only absorbs one-fourth of the export earnings against two-thirds 10 years ago); thus ensuring support from the western countries. The Algerian economy is strongly dependent on the oil sector due to its weak diversification.

      The other major sector of the Algerian economy is agriculture, which employs one-fourth of the active population and is very diversified. Nevertheless, this field has uncertain productivity mainly due to its vulnerability to climatic conditions. Moreover, the standard of living of the population is still low and unemployment is high (35%). Finally, subterranean economy plays a first plan role by probably representing one fourth of the GDP.

      The Association Agreement signed with the European Union came into force the 1st september 2005 and will lead to the liberalization of bilateral trade exchanges by the year 2010. Its top three import partners are France, Italy and Germany and its top three export partners are the United-States, Italy and France. Algeria mainly imports machines, cereals, electronic equipment and manufactured goods.