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Third COVID wave will further dampen Algeria's economy

Wednesday, July 21, 2021


The government has reimposed social distancing restrictions, but a reinvigorated pandemic will hurt the economy further and forestall any economic turnaround.


  • Algeria may find itself at a disadvantage compared to Morocco and Egypt, which have made greater progress countering the pandemic.
  • The longer Algeria’s economic turnaround is delayed, the more likely it is that the country will have to resort to external financing.
  • If the country’s economic crisis becomes more acute, the president would likely reshuffle the cabinet in an effort to shift blame.
  • The president himself may also come under pressure to resign.

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