AfDB Predicts Growth in Algeria’s GDP in 2025

The African Development Bank says Algeria’s economic recovery is strengthening and its gross domestic product (GDP), which increased by 3.6 percent in 2022 and 4.2 percent in 2023, is set to be 4.0 percent in 2024 and 3.7 percent in 2025.

According to the AfDB Country Report 2024 which will be officially presented in Algiers in mid-September, Algeria’s economic growth is supported by the oil and gas, industrial, construction and services sectors.

“Employment patterns show a move towards the services sector to the detriment of agriculture and manufacturing industry,” the report said, noting that the structure of GDP has not fundamentally changed and that the country should implement further reforms to speed up the structural transformation of its economy.


“For Algeria, the reform of the global financial architecture is an opportunity to position itself as a donor country to support progress towards the development programmes of other African countries,” commented Mr Lassaad Lachaal, the African Development Bank’s Country Manager for Algeria.

The reform of the international financial architecture is an opportunity for Algeria to position itself as a donor country to support the development programmes of other countries in Africa, states the report.

In 2023, Algeria joined the group of donors that contribute to the funding cycle of the African Development Fund under AFD-16. Although the country has allocated a budget of US$1 billion to fund development projects in Africa, it will still need additional resources to support actions to protect the climate and drive green-growth initiatives.

In the short term, additional financial resources for Algeria’s structural transformation could come from an improvement in mobilising domestic funding and strengthening the sustainability of the public finances, the report stressed.

The report, which aims to further political dialogue on macroeconomic performance and prospects and act as an essential tool for political decision-makers, governments and development partners, will be officially presented to government leaders, the private sector, technical and financial partners, researchers and academics, as well as the media, in mid-September 2024, at the Bank’s local headquarters in Algiers.

The theme of the report is in line with the 2024 report on the African Economic Outlook for the whole continent, entitled: “Driving Africa’s Transformation – The Reform of the Global Financial Architecture”.