While several Western economies struggle under record public debt, Algeria has emerged as a model of fiscal discipline on the African continent, demonstrating that economic growth and financial stability can coexist.
In the United States and France, public debt exceeds 115% and 114% of GDP, respectively, raising concerns over potential budget crises and possible interventions by the International Monetary Fund. Against this backdrop, Algeria has maintained a markedly different approach, favouring domestic financing over reliance on foreign borrowing.
“This strategy has allowed Algeria to shield its economy from international market fluctuations and geopolitical tensions,” said an economic analyst in Algiers. “It is a counter-current policy compared to many developed countries, whose heavy dependence on external debt often comes at the cost of sovereignty.”
Algeria’s approach has resulted in a manageable debt-to-GDP ratio and bolstered reserves exceeding $90 billion in foreign exchange, providing a safeguard against external shocks. These reserves have enabled the government to pursue ambitious investment projects aimed at diversifying the country’s sources of income and stimulating development in key sectors such as hydrocarbons, industry, and international trade.
With a GDP target of $400 billion, Algeria aspires to become the second-largest economy in Africa. The government has paired economic expansion with political and regulatory reforms designed to attract foreign investment while maintaining financial autonomy. Modernising investment laws and expanding port infrastructure are among the initiatives intended to enhance Algeria’s appeal to international capital.
Observers note that Algeria’s disciplined debt management sets it apart from many countries, positioning the nation as a potential economic powerhouse on the continent. By combining prudent fiscal policy with strategic investment, Algiers is seeking to secure long-term growth while preserving its economic sovereignty, offering a blueprint for other African states striving for balanced development.
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