The Algerian prime minister, Ahmed Ouyahia, has defended his government's controversial austerity measures, saying they'll benefit the country in the long term.

He told an at times hostile parliament on Sunday that for a decade Algeria had been in economic crisis but he saw no alternative to his programme.

The measures have left Mr Ouyahia deeply unpopular, with many companies going bankrupt and hundreds of thousands of people losing their jobs.

But inflation has been cut back sharply to about five per cent and foreign reserves have risen.

Opposition parties have been calling for the government's resignation and correspondents say Mr Ouyahia is expected to offer to step down later this week.