The International Monetary Fund (IMF) has released a report praising Algeria's strong economic growth and efforts to diversify its economy. According to the report, Algeria's economic growth is expected to reach 3.8% in 2026. The IMF noted that the country's economic growth has been driven by a strong increase in investment. Algeria's non-oil sector growth was 4.3% in 2025 and is expected to reach over 4% in 2026.
The IMF report highlighted that Algeria's economic growth has been robust, increasing from 3.7% in 2024 to 3.9% in 2025. The report also noted that the country's economic reform program has contributed to supporting economic diversification and promoting growth. The IMF expects Algeria's external debt to remain low, at 1% of GDP in 2026, down from 1.1% in 2025.
The IMF report also noted that Algeria's economic prospects are positive in the short term. The report stated that higher hydrocarbon prices will boost Algeria's export earnings and public finances. The IMF expects Algeria's current account deficit to narrow in 2026, driven by higher hydrocarbon revenues. This is expected to give Algeria the opportunity to rebuild its financial safety net.
The IMF welcomed Algeria's efforts to promote financial stability and inclusion. The report noted that Algerian banks have adequate levels of liquidity, profitability, and capitalization. The IMF also praised Algeria's success in quickly exiting the Financial Action Task Force's (FATF) enhanced surveillance list.
The IMF report also highlighted that Algeria's economic growth has been driven by a strong increase in investment. The report noted that the country's non-oil sector growth has been particularly strong, driven by investments in various sectors. The IMF expects this trend to continue, driving economic growth and diversification.
The Algerian government has been implementing various economic reforms to promote growth and diversification. The government has been investing in various sectors, including infrastructure, industry, and agriculture. The IMF report noted that these efforts have been successful in promoting economic growth and reducing the country's dependence on hydrocarbons.
The IMF's positive assessment of Algeria's economy is a welcome development for the country. The report is expected to boost investor confidence and promote economic growth. The Algerian government will likely use the report to promote its economic policies and attract foreign investment.
Key points
- Algeria's economic growth is expected to reach 3.8% in 2026.
- The country's non-oil sector growth was 4.3% in 2025 and is expected to reach over 4% in 2026.
- Algeria's external debt is expected to remain low, at 1% of GDP in 2026.
