The International Monetary Fund (IMF) has commended Algeria's economic resilience, citing strong growth in 2025 and ongoing efforts to diversify the economy. According to the IMF, Algeria's economy is expected to grow by 3.9% in 2025, up from 3.7% in 2024, driven by a public investment strategy. This growth has been fueled by a strong performance in various sectors, positioning Algeria for continued economic progress.
The IMF has noted that Algeria's non-hydrocarbon economy is also showing signs of growth, with a 4.3% increase in 2025 and a projected 4% growth in 2026. This trend suggests that the country's efforts to diversify its economy are yielding positive results. The IMF attributes this growth to the authorities' strategy of promoting economic diversification and reducing dependence on hydrocarbons.
The IMF's assessment, released after the conclusion of its Article IV consultation with Algeria on September 11, highlights the country's positive economic prospects. The fund expects Algeria's growth to remain strong, with a projected 3.8% increase in 2026. This outlook is driven by expectations of higher hydrocarbon prices, which are likely to boost exports and government revenues.
The IMF also expects Algeria's exports to increase, rising from 15.8% of GDP in 2025 to 19.3% in 2026. Conversely, imports are projected to decline, from 21.9% of GDP in 2025 to 18.5% in 2026. This shift is expected to contribute to a more sustainable balance of payments position.
The IMF has welcomed Algeria's efforts to strengthen its financial stability and inclusion, noting that the banking sector remains liquid, profitable, and well-capitalized. The fund also praised the authorities' measures to enhance banking supervision, crisis management, and liquidity, as well as improve governance in state-owned banks.
The IMF's assessment also highlights Algeria's successful exit from the Financial Action Task Force's (FATF) list of countries subject to enhanced monitoring. The fund congratulated the authorities on this achievement, which reflects the country's commitment to strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) framework.
Overall, the IMF's assessment underscores Algeria's economic resilience and the effectiveness of its diversification efforts. The fund's positive outlook is contingent on the authorities' continued implementation of structural reforms and prudent economic policies. If sustained, these efforts are likely to support Algeria's long-term economic growth and stability.
Key points
- The IMF expects Algeria's economy to grow by 3.9% in 2025 and 3.8% in 2026.
- The country's non-hydrocarbon economy is projected to grow by 4.3% in 2025 and 4% in 2026.
- Algeria's exports are expected to increase, driven by higher hydrocarbon prices.
