The repercussions of the euro crisis on the flow of foreign direct investment into Algeria

Abstract

The global economy did not recover from the subprime mortgage crisis of 2008 until the euro crisis (Europe's sovereign debt) exploded warningly and threatening to undermine a unique experience that it was hoped would culminate in the finest forms of economic integration. The global crisis resulted in a recession in the European economies, which resulted in the injection of large liquidity to stimulate the economies. Weak (Greece), in addition to external borrowing (FMI, China,...), which resulted in a slowdown in growth, and even more so an inability to repay Greece’s sovereign debt and then its spread to the rest of the Eurozone countries, which affected the stability of the system. The global economic and financial situation for all countries associated with the euro.

Algeria is considered among the countries most affected by any collapse of European economies, as 60% of Algeria's economy is linked to Europe.

This study came to examine the repercussions of the Eurozone crisis and the European sovereign debt crisis on foreign direct investments coming into Algeria, and the proposed solutions to avoid this in the future.