Algeria is facing several years of subdued growth and rising macroeconomic challenges as thegovernment turns to austerity in response to lower oil revenues. The Algerian economy will experience aslowdown in growth over 2017, as its adjustment to a lower oil price environment continues. Fiscalconsolidation will constrict investment and consumption, which will undermine petrochemicalsconsumption. Investment in ethane-based petrochemicals production seems unattractive due to thenarrower ethane-naphtha spread and the failure of past attempts to win partners for downstreamdevelopment.
In 2017, Algeria is set for significant growth in car-making, which should have a corresponding effect ondemand for plastic and rubber products used in the manufacture of automotive parts. The benefits topetrochemicals consumption will depend on whether an indigenous automotive parts sector will utilise theoutput of local plastics converters. Growth in consumption will largely benefit imported petrochemicalsgoods.
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