Name: Course: Tutor: Date: Algeria and Morocco Economics and Financials Morocco and Algeria are developing countries in Africa with unique economies. In an overview of Algeria`s economy, the primary challenges that Algeria faces are the instability of oil prices and insecurity issues regarding politics and the society. Despite the draft budget for the year 2016, the country will not be able to overcome the decreasing oil prices and GDP level since the focus of the country is on maintaining social stability. The GDP of Algeria dropped from 4.3% in 2014 to 2.8% in 2015. The inflation rate in the country has no prospect of decreasing, and it is seen to increase from 2.9% in 2014 to 5.5% in 2015. There is also a current account deficit that has increased from -4.5% to -15.8% and constant increase in the unemployment rate (Ayadi, Arbak and Naceur 220). Algeria has a lot of potentials to boost its economy by tapping into the foreign exchange and investment in oil and gas reserves