Algeria has solidified its reputation as the most affordable country in the Maghreb, offering households and investors alike a compelling combination of low living costs and robust public services.
According to the 2025 edition of Numbeo’s Cost of Living Index, Algeria ranks as the least expensive country in North Africa, outpacing both Tunisia and Morocco.
This ranking is underpinned by an extensive state-led “social shield,” which continues to subsidize key essentials such as fuel, electricity, bread, and milk.
These subsidies, among the most generous in the region, insulate Algerian families from international economic shocks and allow greater financial flexibility for savings, education, and leisure.
In a move symbolic of its social commitment, the Algerian government heavily subsidized the importation of livestock for Eid al-Adha 2025, ensuring accessibility for its citizens during the holiday.
This stands in contrast to neighbouring Morocco, where support was notably absent, stirring public debate.
While Algeria’s average wages remain below those of Morocco, wage growth between 2021 and 2024 outpaced inflation, stabilising purchasing power at 34.5 points.
Analysts project this trend to continue into 2026, pointing to an economy that is not only stabilising but also modernising.
Algeria also leads in healthcare and education, boasting the highest score in the 2025 Maghreb Health Care Index (57.2).
Public universities remain free, social housing programs are expanding, and middle-class families benefit from interest-free loans—all of which elevate the standard of living and social mobility.
For investors, Algeria presents a fertile landscape. Competitive costs for rent, energy, and labour—combined with a strategic position between Europe and Africa—make the country increasingly attractive for foreign capital.
Italy, notably, has surged ahead of France in recent years as a major investor in Algerian markets.
The Algerian government has signalled intentions to gradually reform its subsidy model, aiming to target aid more efficiently without compromising the affordability of basic goods.
This measured strategy is designed to maintain Algeria’s economic advantage while ensuring social equity and fiscal sustainability.
With a low cost of living, expanding public infrastructure, and a government intent on reform, Algeria in 2025 offers a rare blend of affordability, stability, and opportunity—positioning itself as a rising economic power in the Maghreb.
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