Industrial activity in Algeria gains speed in second quarter

17/10/2006

Industrial activity in Algeria accelerated in both the public and private sectors in the second quarter, according to a survey conducted by the National Statistical Office, Liberté reported. The survey was carried out among 780 companies (380 public and 400 private). It found that public companies used 67% of production capacity, while private firms used 73%. However, due to shortages of raw materials, 36% of production capacity of public companies remained under-used, causing work stoppages of more than 30 days. Nearly 38% of the production potential of the public sector and 37% of that of the private sector was affected by power failures, causing work stoppages of less than six days for 95% of the surveyed companies.

According to directors of the surveyed public companies, demand for manufactured goods fell in the same period, while private companies reported the opposite trend, supported by the upward shift of retail prices. Employment in the public sector continued to decline due to the retirement of employees, while the private sector reported stable employment rates. (Liberte)