Press Release No. 10/410

Press Release: Statement by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, on the Occasion of His Visit to Algeria

November 3, 2010

Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), made the following statement today in Algiers:

“I am delighted to have had the opportunity to travel to Algeria, and I sincerely thank President Bouteflika, Prime Minister Ouyahia, and Governor Laksaci for their warm hospitality and the worthwhile discussions we had. Our meetings focused on the challenges Algeria is facing to ensure sustainable growth and to make ongoing improvements in the standard of living of its citizens.

Despite an uncertain international context, the Algerian economy continues to perform well as a result of government spending. Algeria has established a comfortable financial position thanks to conservative macroeconomic policies in the past. However, despite major progress, the unemployment rate remains relatively high, especially for youth. The principal challenge for Algeria’s economy is to create sufficient jobs for the new generation by diversifying economic activity. In this context, the government has taken steps to improve economic competitiveness to ensure medium-term growth, mainly through an ambitious public investment program.

Continuing the structural reforms, and in particular improving the business climate, will bolster Algeria’s prospects for medium-term growth. Such actions will foster the development of private investment and the diversification of the economy, while they make the economy more competitive and more attractive to foreign investors. To this end, the IMF will continue to support the efforts of the government and the Bank of Algeria to make the banking sector stronger and more efficient.

In addition to meeting with the Algerian authorities, I will also have the pleasure of attending a conference organized by the Bank of Algeria and the IMF Institute on natural resources management. This conference will provide an excellent opportunity for productive exchanges among many representatives of African countries on management issues and the challenges that natural resources create.

I look forward to continuing the close and warm cooperation between the Algerian authorities and the IMF.”