Algeria elections may not bring economic recovery

Significance

The new parliament could provide an opportunity for a review of Algeria’s economic policy options. The previous legislature was constrained by the fact that it had been elected during the time of former President Abdelaziz Bouteflika (in office 1999-2019), which tainted many of its leading members by association.

Impacts

• Islamists are likely to make gains in the election, mainly because the two main establishment parties are discredited and in disarray.
• Extra spending on healthcare and settling arrears to public agencies will not stem protests against disenfranchisement and living standards.
• The election could provide an opportunity for the government to bring forward detailed proposals for reviving the car assembly industry.