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Growth and Technology in Algeria and MENA region: what prospects for 2008?

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Developing Countries Must Improve Capacity To Absorb And Use Technology
Developing countries to cushion rich-country slowdown in 2008
January 2008 - The last edition of Global Economic Prospects 2008, subtitled Technology Diffusion in the Developing World, examines over the near and longer term, it takes an in-depth look at the current level of and recent trends in technological achievement.

Here are some data on Algeria and MENA region, and the two main report findings :

Economic prospects in MENA region and Algeria

GDP in the Middle East and North Africa eased slightly in 2007 to 4.9 % and will likely rise with the help of high oil prices to 5.4 % in 2008.

In oil-exporting countries, higher oil prices are adding to revenues, some of which are being invested infrastructure in countries like Algeria and Iran. 

In Algeria, hydrocarbon receipts increased moderately to $54 billion, widening Algeria’s current account surplus slightly to $29 billion, or 23 percent of GDP.


 

MENA prospectsA fall in hydrocarbon output has constrained growth in Algeria, with GDP advancing just 1.8 percent in 2006 and 3.4 percent in 2007.

Oil and gas output growth declined 2.6 percent in 2006, but activity unrelated to hydrocarbons expanded by a robust 6 percent in 2007.

A major government investment initiative got under way and is slated to expend more than $22 billion over the coming years on housing, transport, and agriculture.

This is boosting job growth in construction and related sectors and underpinning strong household spending.

 

Data and statistics on Algeria

Developing countries must improve capacity to absorb and use technology

Technological progress increased 40 to 60 percent faster in developing countries than in rich countries between the early 1990s and early 2000s,” said Andrew Burns, Lead Economist and main author of the report. “Nevertheless, developing countries have a long way to go, given that the level of technology that they use is only one quarter of that employed in high-income countries.”

In fact, rapid technological progress in developing countries has helped to:

  • Raise incomes and,
  • Reduce the share of people living in absolute poverty from 29 percent in 1990 to 18 percent in 2004.

Despite these gains, the technology gap between rich and poor countries remains enormous, and the capacity of developing economies to adopt new technology remains weak.

More

Developing countries to cushion rich-country slowdown in 2008

Overall, we expect developing-country growth to moderate only somewhat over the next two years.
However, a much sharper United States slowdown is a real risk that could weaken medium-term prospects in developing countries
,” said Uri Dadush, Director of the World Bank’s Development Prospects Group and International Trade Department. 

Resilience in developing economies is cushioning the current slowdown in the United States,
with real GDP growth for developing countries expected to ease to 7.1 percent in 2008, while
high-income countries are predicted to grow by a modest 2.2 percent.

More


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