50% DROP IN THE PURCHASING POWER OF ALGERIANWAGES.

CAÍDA DEL 50 % DEL PODER ADQUISITIVO DE LOS SALARIOS ARGELINOS.
6 September, 2021
BAISSE DE 50 % DU POUVOIR D’ACHAT DES SALAIRES ALGÉRIENS.
6 September, 2021
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50% DROP IN THE PURCHASING POWER OF ALGERIANWAGES.

The consumer protection agency (APOCE) in Algeria, has published a comparative study of the evolution of prices in the period 2010 to 2021 that demonstrates the significant fall in the purchasing power of Algerians, to the point that the average wage in 2010 has lost 50% of purchasing power, that is, consumer prices in Algeria have doubled.

The DA/USD conversion rate, currently at 161.36 DA/€, in September 2010 was 93.62 DA/€, that is, it has experienced a fall of 61%, this being the main cause of the increase inprices, but it is not the only one.

Restrictive measures on imports and the consequent decrease in the supply of consumer products on the local market also contribute to the increase in  prices, in addition to the supply difficulties  of local production companies, in short, a decrease in the supply of products that automatically leads to increases in price. The measures of pressure on trade continue, with the publication in March 2021 of the D.E. 21-94, regulations on payment of imports, obligation of restitution of the contenders, blockade of dry ports and the well-known bureaucratic obstacles; all this will not help to increase the supply and relieve the pressure on prices.

The decision of successive governments since 2017 to resort to printing paper money to finance the deficit poses a threat to the short-term evolution of the value of the dinar, in 2021 the Bank of Algeria has announced that the printing of paper money will reach 15% of GDP, which will be reached in a single year, half of what was printed in the first three years of implementation of the measure, from 2017 to 2020.

All this suggests that the situation, far from improving, will worsen.

 

Source:

TSA 06/09/2021

https://www.tsa-algerie.com/lincroyable-degradation-du-pouvoir-des-algeriens-en-dix-ans/

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