Algeria adopts new economic model to counter oil revenues slump

Algeria on Tuesday adopted a new economic growth model, as part of the North African nation's efforts to diversify its economy which has been dependent on hydrocarbons revenues.

This new model was examined and adopted during the council of ministers meeting chaired by President Abdelaziz Bouteflika, according to a statement of the president office.

The economic model is based on a renovated fiscal policy supported by the revenues of ordinary taxation, which is due to cover public spending and investments by 2019.

The model aims in particular at investing in high value-added areas, such as renewable energy, agribusiness, services, digital and knowledge related economy, hydrocarbons downstream industry and mining, the statement said.

Algeria is struggling to get rid of full dependency on oil revenues, as the government aims to reach a long term goal of building a strong and sustainable economy free from hydrocarbons by 2030.

Hydrocarbons account for about 94 percent of the North African nation's total exports. Due to the drop in oil prices in the last two years, Algeria has been suffering major decrease in revenues. Endit