# Algeria economic growth and energy security outlook > Live situation record from CLSTR: https://clstr.news/situations/algeria-economic-growth-and-diversification > Updated: 2026-10-20T21:23:54.000Z. Sources: 19. Developments: 5. The International Monetary Fund (IMF) has provided a positive assessment of Algeria’s economic performance following Article IV consultations, noting that reform programs have strengthened growth and reduced hydrocarbon reliance. Real GDP growth is projected to reach 3.8% in 2026, following 3.7% in 2024. The non-hydrocarbon sector is expected to show significant strength, having grown by 4.3% in 2025 and projected to exceed 4% in 2026. Regarding external debt, the IMF anticipates it will remain low, staying below 1% of GDP in 2026 and potentially dropping to 0.5% by 2031. In the energy sector, Minister of State for Hydrocarbons Mohamed Arkab has announced a target to raise the share of processed hydrocarbons from approximately 32% to over 50% by 2030. This is supported by a $71.6 billion investment program through 2030, including $13 billion for refining and the development of the Hassi Messaoud refinery and Arzew polypropylene plants. While export revenues reached $37.5 billion in the first nine months of 2026, LNG exports saw a 27% year-on-year drop in the third quarter of 2026, attributed to maintenance at the Arzew complex, reduced volumes to liquefaction facilities, and increased domestic electricity demand. Diversification efforts also extend to the pharmaceutical sector. In 2025, Algeria exported approximately $52 million in pharmaceutical products and medical devices to 33 countries. Industry Minister Ouacim Kouidri noted that the country hosts nearly 30% of Africa’s pharmaceutical factories and has adopted a national list of essential medicines to prioritize domestic production and international market optimization. ## Claims - Algeria aims to increase domestic hydrocarbon processing from approximately 32% to over 50% by 2030. (corroborated by 2 sources) - The government has launched a $71.6 billion investment program through 2030. (single source) - Nearly $13 billion of the investment program is earmarked for refining. (single source) - Petrochemical plants are scheduled to begin operations by the end of 2027. (single source) - Algeria exported approximately 14 million tons of petroleum products in 2024. (single source) - LNG exports in the third quarter of 2026 fell by 27% compared to the same period in 2025. (single source) - Decreased LNG exports are due to lower volumes sent to liquefaction plants, increased domestic electricity demand, and maintenance at the Arzew complex. (single source) - Hydrocarbon export revenue reached $37.5 billion in the first nine months of 2026. (single source) ## Timeline ### 2026-10-20: Algeria exports $52 million in pharmaceutical products in 2025 Algeria exported $52 million in pharmaceuticals and medical devices to 33 countries in 2025, leveraging its position as a major African production hub. 3 sources. https://clstr.news/cluster/algeria-exports-52-million-in-pharmaceutical-products-in-2025 ### 2026-10-20: Algeria targets over 50% hydrocarbon processing by 2030 Algeria aims to increase domestic hydrocarbon processing to over 50% by 2030 through a $71.6 billion investment program, despite recent declines in LNG export volumes. 5 sources. https://clstr.news/cluster/algeria-targets-over-50-hydrocarbon-processing-by-2030 ### 2026-10-14: Algeria seeks IMF flexibility amid regional energy shocks Algeria is requesting IMF flexibility amid regional energy market shifts, leveraging its stable hydrocarbon export routes while reaffirming its commitment to African continental unity and stability. 2 sources. https://clstr.news/cluster/algeria-seeks-imf-flexibility-amid-regional-energy-shocks ### 2026-10-14: Algeria targets 2028 for national vehicle production and major industrial growth Algeria aims to launch a fully nationalized vehicle by 2028 and has announced major industrial expansions, including Opel engine production and $27.5 billion in mining and infrastructure investments. 7 sources. https://clstr.news/cluster/algeria-economy-shows-strong-growth-projections-and-diversification-efforts ### 2026-09-22: IMF praises Algeria's economic growth and diversification The IMF reports robust economic growth for Algeria, projecting a 3.8% GDP increase in 2026 driven by successful economic diversification and strong non-hydrocarbon sector performance. 4 sources. https://clstr.news/cluster/imf-praises-algerias-economic-growth-and-diversification --- Cite as: Algeria economic growth and energy security outlook. CLSTR, https://clstr.news/situations/algeria-economic-growth-and-diversification