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With a population of 46 million, vast hydrocarbon reserves and its proximity to Europe, Algeria has significant economic development potential, but its future outlook is subject to great uncertainties. Algeria will have to deal with large macroeconomic imbalances. Algeria is fundamentally a state-driven economy that runs large twin deficits. The rebound in global oil prices will not be sufficient to restore macroeconomic stability. The ability of the economy to recover is undermined by the need to consolidate public finances and external accounts. The fragile socio-political context compounds these difficulties. Furthermore, macroeconomic challenges have pushed the authorities to change their attitude towards foreign investors. Several reforms have been introduced since the beginning of 2020 with a view to improve the country’s attractiveness, in particular in the oil and gas sector as many years of under-investment and robust domestic energy consumption have affected the country’s ability to export hydrocarbon products. Algeria is a member of the Organisation of Petroleum Exporting Countries (OPEC).