The International Monetary Fund (IMF) has praised Algeria's economic resilience, driven by strong growth in 2025 and efforts to diversify the economy. The IMF forecasts 3.9% economic growth in 2025, up from 3.7% in 2024, supported by a public investment-led strategy. This growth is a testament to Algeria's economic progress. The IMF's assessment was made after its executive board concluded consultations with Algeria under Article IV of the IMF's Articles of Agreement, which ended on September 11.
Algeria's non-hydrocarbon economy grew by 4.3% in 2025 and is expected to reach 4% in 2026, according to the IMF. This growth confirms the country's efforts to diversify its economy. The IMF also forecasts 3.8% growth in 2026, which is expected to remain strong. Rising hydrocarbon prices are expected to boost exports and budget revenues, providing an opportunity for Algeria to rebuild its safety margins.
The IMF expects Algeria's exports to increase from 15.8% of GDP in 2025 to 19.3% in 2026. In contrast, imports are expected to decline from 21.9% of GDP in 2025 to 18.5% in 2026. The IMF's forecast is based on its projections for the period from 2023 to 2031. Algeria's budget deficit decreased in 2025, supported by exceptional transfers from state-owned companies and the Banque d'Algérie.
The IMF has praised Algeria's efforts to promote financial stability and inclusion. Algerian banks remain liquid, profitable, and well-capitalized. The IMF emphasized the importance of measures to strengthen banking supervision, crisis management, and liquidity mechanisms, as well as improving the governance of public banks.
The IMF welcomed Algeria's swift exit from the Financial Action Task Force's (FATF) list of countries subject to enhanced monitoring. This exit is a positive development for Algeria's economy. The IMF's assessment of Algeria's economy is optimistic, citing the country's resilience and diversification efforts.
The Algerian government's strategy to boost economic growth through public investment has yielded positive results. The country's economic prospects are positive, driven by rising hydrocarbon prices and efforts to diversify the economy. The IMF's forecast of 4% growth in 2026 is a positive indicator for Algeria's economic future.
Overall, the IMF's assessment of Algeria's economy highlights the country's progress in promoting economic resilience and diversification. The country's economic growth is expected to remain strong, driven by public investment and rising hydrocarbon prices.
Key points
- Algeria's economy is expected to grow 4% in 2026.
- The IMF has praised Algeria's efforts to promote financial stability and inclusion.
- Algeria's non-hydrocarbon economy grew by 4.3% in 2025.
