By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The International Monetary Fund (IMF), Wednesday said Algeria’s Economic growth is expected to remain solid, between 3 and 3½ percent (3%-3½%) over the next two years.

Christine Lagarde, Managing Director (MD) of the IMF said this in a Statement made available to InvestAdvocate at the end of her visit to Algeria.

“During these meetings, I congratulated the Algerian authorities for the progress witnessed during the past decade. We discussed the outlook for the global economy and its impact on countries in the region. Despite the difficult external environment, growth is expected to remain solid, between 3 and 3½ percent over the next two years. I also extended my appreciation for Algeria’s important support to strengthening the IMF’s lending capacity” she said.

According to her, Algeria has a significant growth potential, but faces a number of challenges—namely high inflation and unemployment, particularly among the young and women.

“I encouraged my counterparts to take further measures to preserve macroeconomic stability and ensure long-term fiscal sustainability” Lagarde said.

She also advised the Algerian Authorities to spur inclusive growth and reduce unemployment, affirming that a new awakening of the Private Sector is also needed.

Lagarde affirmed that structural reforms to enhance the business climate, attract Foreign Direct Investment (FDI), and the Country should deepen its Financial Sector and equip the workforce with needed skills which will be key.

She further affirmed that the IMF stands ready to continue providing policy advice and technical assistance to strengthen the Algerian economy’s resilience.

“Finally, I would like to express my great appreciation to the government and the people of Algeria for their gracious hospitality. The IMF values highly the constructive and collaborative relationship with Algeria” she said.