IMF praises Algeria's economic growth and diversification

The International Monetary Fund (IMF) has issued a positive assessment of Algeria's economic performance following its Article IV consultations. The IMF highlighted robust growth and successful efforts toward economic diversification, noting that the country's reform program has helped strengthen growth and reduce reliance on hydrocarbons.

Real GDP growth is projected to reach 3.8% in 2026, following 3.7% in 2024. The non-hydrocarbon sector showed significant strength, growing by 4.3% in 2025 and expected to exceed 4% in 2026. Additionally, the IMF anticipates that Algeria's gross external debt will remain low, projected to stay below 1% of GDP in 2026 and potentially drop to 0.5% by 2031.

While higher hydrocarbon prices are expected to boost exports and budget revenues, providing opportunities to rebuild financial buffers, the IMF emphasized the ongoing need for structural reforms. These include further promoting private sector-led growth and maintaining the momentum of economic diversification.