The African Development Bank (AfDB) has raised its forecasts for Algeria’s economic growth, reflecting growing confidence in the country’s economic stability and resilience despite ongoing global economic uncertainty and fluctuations in energy markets.
In its latest “African Economic Outlook 2026” report, the AfDB projected Algeria’s real GDP growth at 4.1% for 2026, compared to earlier estimates of around 3.4%, marking a significant upward revision. The bank also expects growth to continue improving in 2027, reaching approximately 4.2%.
According to the report, this stronger outlook is mainly driven by increased public investment and the continued expansion of non-hydrocarbon sectors, particularly industry, agriculture, and services. The bank highlighted Algeria’s efforts to diversify its economy and reduce dependence on oil and gas revenues, noting that these reforms are beginning to show tangible results.
The report also emphasized the positive performance of Algeria’s domestic economy, supported by rising industrial and agricultural production as well as stronger internal consumption. In addition, inflation rates have declined considerably, dropping from 4.4% in 2024 to an estimated 1.7% in 2025, helping improve purchasing power and economic stability.
The AfDB further praised Algeria’s social and development policies, which contributed to improving development indicators and reducing social disparities across the country.
These revised forecasts are consistent with Algeria’s 2026 Finance Law projections and align with estimates from other international financial institutions, including the International Monetary Fund, which also raised its expectations for Algeria’s economic growth.
Observers believe the upgraded forecasts reflect the improving international perception of Algeria’s economy, especially as the country continues investing in infrastructure, industry, agriculture, and energy projects while strengthening economic partnerships with several nations worldwide.
Despite global geopolitical tensions and economic pressures affecting many countries, Algeria appears to be positioning itself among the more stable and steadily growing economies in Africa for the coming years.