Real GDP growth in 2005 is estimated at about 5.3 per cent, the report said. Algiers was commended for using plentiful oil revenues to set out a $57,000 million public investment plan up until 2009, and was encouraged to prepare comprehensive medium-term budget projections.

Greater scrutiny of public banks and the passage of the hydrocarbons law were among the structural reforms praised, while the government was encouraged to push ahead with the privatisation of state banks. Monetary policy was generally prudent, the IMF said, but Algiers should consider raising interest rates in light of the scale of planned increases in public spending.