Algeria expects economic growth at 6% in 2005; oil's effect on currency reserves

The Algerian President Abdul Aziz Butaflika said that his country's economy will grow at a rate of 6% during the current year in comparison to 5.8% in 2004, making use of the increase in fuel sales.

Butaflika added that the country's debts decreased from $ 40 billion in 1998 to $ 19 billion by the end of 2004.

Reserves of the foreign currency is $ 40 billion by the end of 2004 in comparison with $ 4 billion when Butaflika came to power in 1999.

Algeria, a member in OPEC, has benefited from the increase of oil princes in the world market in recent years. Fuel exports compose 96% of the country's revenues of hard currency.

Worthy mentioning that the Algerian government Sontrak group which supervises oil and gas projects in Algeria said by the beginning of February it aims at increasing Algeria's production capacity of oil to two million barrels every day by the fall of 2010. But it set plan to increase production to 1.5 million barrels for few months. At the meantime, Algeria produces 1.4 million barrels daily.

Sintrak director general Muhammad Mizban said he expects the investment of $ 5.1 billion in the Algerian energy sector in 2005 in an increase of 3% over the figures of 2004.