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A recent report warns that Algeria is facing the threat of a severe economic crisis, stemming from internal power struggles, deteriorating relations with neighboring countries, a decline in foreign exchange reserves, and escalating political and military crises. The report links the rising prices of basic commodities, especially wheat, and worsening social conditions to a budget deficit estimated at around $60 billion, with expectations of further deterioration if current pressures persist. It also indicates the possibility that Algeria may resort to borrowing from Russia, China, or the International Monetary Fund if the crisis worsens. Meanwhile, conflicts continue among different factions within the ruling elite to assert control, which exacerbates internal fragility and threatens a continued slide into a sharp economic downturn or a possible civil war.
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