“The Impact on Trade .

1The following table shows the exports and imports of the economy under normal circumstances, now with international borders closed, this could be the worst situation in which the economy is being.


Exports $ (in billion) Imports $(in billion)

Italy $5.36 China $7.72

Spain $4.72 France $5.12

France $4.23 Italy $3.62

United States $3.7 Spain $3.21

Turkey $2.27 Germany $2.93
Algeria’s exports are mainly dependent on petroleum and natural gas exports. 60% of the budgeted revenue comes from the hydrocarbons that is also the 30% of GDP and also the 95% of the total export revenue. Algeria had foreign currency reserves worth $150 billion, which will be the key factor to play in this crisis, country also has been reported of corruption, uneven distribution of income in the country will make the situation worse than it already is. The Economy of Algeria has witnessed a continuous growth from 2013 to 2016; 2013—2.8% 2014—4.0% 2015—3.9% 2016—4.0% The GDP is expected to drop to 2.4% in 2020 as a whole, with global markets plunging in the days thereafter. Inflation in the economy was estimated to be at 4.9% in 2011 and worked it way up to whole 8.9%, the economy had a trade surplus of $27.18 billion in 2012 and in 2018 it turned into deficit of $13.45 billion. Africa is also known for its exports to China of various raw materials, obviously the demand to that commodities have been hampered. It is not like the economy is not working upon it, the central bank is taking several measures to ensure the economy and the people in the country to be safe, but when lockdowns are initiated and all the market places are ordered to be shut down for over two – three week then there’s not much that the economies officials do about the trade situation of the economy. Algerian President Abdelmadjid Tebboune also reportedly ordered the allocation $100 million for importing pharmaceutical products, personal protection equipment and chemical analysis equipment as part of measures to prevent the spread of the virus. Algeria is the 56th largest exporter of the world, but given the current circumstances, It is also been forecasted that the country’s GDP in the first quarter of 2020 can be negative, -0.81 to be precise. The top exports of Algeria are as follows; • Petroleum Gas • Crude Petroleum • Refined Petroleum • Ammonia Before the covid-19 crisis, Algeria also suffered from the price fall of oil as it is the chief exporting item of Algeria in refined form and raw form both, oil accounted of 90% of the exports and 60% of the income from the country’s exports, Algeria was expected to be back on track from this problem and in 2019 it even showed a fragile growth of 2.6%. The political situation affects the economy of the country. The blocking of public procurement as well as the arrest of big companies’ managers lead to piling of unpaid bills, the economies officials kept procrastinating this aspect and that lead to a decline in investor confidence. The growth rate in 2019 when compared to the IMF's previous forecasts and the Algerian government's target level of 4% it turned to be lowered than that. Recent expansionist policies should provide support for growth in the next years, but could also increase macroeconomic imbalances and moderate growth over the medium-term. The IMF forecasts a positive but slow growth in 2020 and 2021, with 2.4% and 1.8%. Algeria in 2018 continued to use its foreign currency reserves to compensate for the uneven global hydrocarbon price fluctuations, this is only a crumb to the bread, economy has had its ups and down then and there, and now the with virus outbreak, foreign currency reserves could’ve come in really handy. It has been on a constant decline over the years. IMF has estimated that, the out of the country’s population 12.5% of the population comes under the umbrella of unemployment, The International Bank for Reconstruction and development (IBRD) came to the conclusion that the economy comprises of 29% as its youth, of that 29% 19.4% are women, out of that 19.4%, 18.5% are university graduates that lead to skill mismatch in the markets, in countries like that trade is already a big mountain to climb and we also have to account for the uneven distribution of income in the economy that tells us that there is a great difference between rural and urban areas of the country, this becomes a key factor while trading with a country like Algeria in the first place and with the covid-19 and the country is also famous for its ongoing protests which were banned by the president, which have been driving the investment out from the country from a long time. 1.3 The Finance and its Crisis With all the business and trade shut down, with limited foreign currency reserves, financing the covid-19 outbreak for Algeria is going to be very challenging, but it seems that they have it under control, the President Abdelmadjid Tebboune has called off the protests and all the people now have to pray from home, president have also repeatedly allocated funds for the same, hospitals are being expanded, masks are being imported, president also mentioned that they have all the necessary equipment required to deal with the crisis. A countries government subsidiaries are primary source of the hard currency, Now Various Algerian government subsidiaries are about to or already have gone in to losses and will be pushed to the brink as their business is upended by the pandemic. Shortage of hard currency will then make it all but impossible to source essential medical supplies and equipment from abroad. The cost of servicing our debts is already exceeds the annual health budgets. Ex: Air Algérie reported loss of $5.5 billion The list continues. .