Algeria Gate: Algeria’s economy is showing strong resilience, with growth accelerating, the non-hydrocarbon sector expanding and the country’s fiscal and financial position gaining strength, according to the International Monetary Fund (IMF).
The Fund also described Algeria’s short-term economic outlook as broadly favorable.
Following its 2026 Article IV consultations with Algeria, concluded on September 11th, the IMF estimated 3.9% economic growth in 2025, up from 3.7% in 2024, supported by a strategy focused on public investment.
The non-hydrocarbon economy grew 4.3% in 2025 and is projected to expand by 4% in 2026, confirming the continued diversification of economic activity.
The IMF expects overall growth to remain robust at 3.8% in 2026. Higher hydrocarbon prices are also expected to boost exports and budget revenues, helping Algeria rebuild its fiscal buffers.
Exports are projected to rise from 15.8% of GDP in 2025 to 19.3% in 2026, while imports are expected to fall from 21.9% to 18.5% of GDP.
The Fund also noted that Algeria’s budget deficit narrowed in 2025, helped by substantial one-off dividend payments from state-owned companies and the Bank of Algeria.
The IMF praised Algeria’s efforts to strengthen financial stability and inclusion, noting that banks remain liquid, profitable and well capitalized. It also highlighted measures to strengthen financial supervision, crisis and liquidity management, and the governance of public banks.
Finally, the IMF commended Algeria for its rapid removal from the FATF list of jurisdictions under increased monitoring, describing it as an important step in strengthening the country’s financial framework.