Algeria is poised to outperform many of its regional peers in 2025, with the International Monetary Fund (IMF) projecting a 3.5% economic growth rate—significantly above the Middle East and North Africa (MENA) average of 2.6%.
The revised forecast, up 0.5 percentage points from October 2024, highlights Algeria’s resilience amid a broader slowdown in oil-exporting economies.
Economic growth remains a vital indicator of national well-being—akin to the heartbeat of a living organism.
It powers employment, fuels consumption, and enables governments to expand public services and invest in infrastructure.
While steady growth signals economic health and stability, faltering momentum often portends social unrest, fiscal shortfalls, and rising unemployment.
In this context, Algeria’s projected growth offers a glimmer of optimism.
Unlike several oil-dependent economies grappling with sluggish expansion—averaging just 2.3% in 2025—Algeria appears to be navigating the volatile global environment with greater agility.
Its progress reflects a mix of factors: a more stable fiscal footing, ongoing economic diversification, and a surprising degree of insulation from oil price shocks.
That said, the numbers only tell part of the story.
“While 3.5% growth is certainly respectable, it remains fragile.
It does not yet signify a structural transformation of the economy, nor a sustainable takeoff,” the report cautions.
It’s a step forward, but far from a final destination.
Looking ahead to 2026, the IMF anticipates a modest rebound across oil-producing nations, with growth likely capped at 3.1%.
Regional economies still face a barrage of challenges, from inflationary pressures to geopolitical volatility and budgetary tightening.
For Algeria, the current momentum represents a fleeting but critical window.
“Robust growth provides scope for decision-making: to stimulate youth employment, to modernize infrastructure, to strengthen social safety nets,” the report notes.
Sustained progress hinges on expanding non-hydrocarbon sectors, promoting innovation, and boosting financial inclusion.
Ultimately, the IMF’s upward revision signals confidence—but the burden now shifts to Algerian policymakers.
“Because growth is only as good as what it helps build: a more equitable society, a more attractive market, and a less uncertain future.”
Source: lanouvelletribune
