CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT 451. This dimension relates to the efficiency aspect of macro-economic governance from the standpoint of using resources optimally to meet the set objectives: human development, sustainable development, regional equilibrium, bridging the generation gap, and diversifying economic activity. All these concerns should be better integrated into the macro-economic framework for future years to provide the means to raise the growth rate to a higher level. 452. Bases for macro-economic forecasting. Generally speaking, no standard model exists for macro-economic predictions. There are, however, a certain number of criteria expected of the system a state uses. Although the system does not need to be sophisticated, there are minimum expectations in respect of relevant sources, exhaustive data and regular updating. In this regard, the CRM agrees with the CSAR analysis, which states that the macro-economic forecasting system suffers from a lack of data from sources other than the budget, thereby rendering the study incomplete. 453. Although these shortcomings are offset by the predominance of the oil sector, it may later have a greater effect on the reliability of forecasts at a time when the country may be less dependent on oil. However, the plan no longer plays its traditional central role, even though there are suggestions that it will be reintroduced with the upcoming preparation of the 2010–2014 development plan. Table 3: Trade balance (US$ million) 2002 2003 2004 2005 Trade balance (1) 6.71 11.11 14.27 26.47 Exports (FOB) 18.71 24.46 32.22 46.33 Hydrocarbons 18.11 23.99 31.55 45.59 Other goods 0.60 0.47 0.67 0.74 Imports (FOB) - 12.01 - 13.35 -17.95 -19.86 Net non-invoiced services (2) - 1.18 - 1.35 -2.01 -2.27 Credits 1.3 1.57 1.85 2.51 Debits -2.48 - 2.92 - 3.86 -4.78 Capital earnings (net) (3) - 2.23 - 2.70 -3.60 -5.08 Interest earned 0.68 0.76 0.99 1.43 Interest paid -1.31 -1.18 -1.29 -1.03 Net transfers (4) 1.07 1.75 2.46 2.06 Total current account (1)+(2)+(3)+(4) 4.36 8.81 11.12 21.18 Net investments 0.97 0.62 0.62 1.06 Sources: Bank of Algeria, IMF. 145

Select target paragraph3

Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents