# Algeria's development and prosperity rankings

> Live situation record from CLSTR: https://clstr.news/situations/algerias-development-and-prosperity-rankings
> Updated: 2026-08-16T13:15:31.000Z. Sources: 5. Developments: 3.

In July 2026, the World Bank confirmed that Algeria continued to be classified as an upper‑middle‑income country. Shortly thereafter, the 2026 Legatum Prosperity Index placed Algeria 83rd globally and sixth among African nations. Utilizing a new “p‑averaging” methodology designed to prevent strong performance in one pillar from masking weaknesses in others, the index revealed significant disparities in the country’s profile.

Algeria scored 64th in society and 85th in development, but fell to 111th in freedom. Specific sub-pillar rankings included 60th for family integrity and 58th for societal integrity, contrasted against 122nd for freedom of expression and 114th for economic freedom. 

Further analysis of Algeria’s economic landscape highlights ongoing challenges in industrialization and diversification. Despite significant hydrocarbon reserves, the country remains one of Africa’s least industrialized economies. According to the African Development Bank’s 2025 Industrialization Index, Algeria faces stagnation attributed to state-dominated sectors, bureaucratic inertia, and historical policies like the 51/49 ownership rule, which have hindered foreign investment and global supply chain integration.

## Timeline

### 2026-08-16: Algeria faces economic freedom and industrialization challenges

Algeria ranks low in economic freedom and industrialization according to the Legatum Prosperity Index and the African Development Bank, trailing regional peers like Morocco.

2 sources. https://clstr.news/cluster/algeria-faces-economic-freedom-and-industrialization-challenges

### 2026-08-01: Algeria ranks 83rd worldwide and 6th in Africa in the 2026 Legatum Prosperity Index

Algeria is 83rd worldwide and 6th in Africa in the 2026 Legatum Prosperity Index, with varied rankings across development, freedom and society pillars.

3 sources. https://clstr.news/cluster/algeria-ranks-83rd-worldwide-and-6th-in-africa-in-the-2026-legatum-prosperity-index

### 2026-07-10: Algeria remains upper‑middle‑income per World Bank classification

The World Bank kept Algeria in the upper‑middle‑income group for a third year, noting GNI per capita rose to $5,850 in 2025, a 9% jump from 2024, underscoring continued economic progress.

3 sources. https://clstr.news/cluster/algeria-remains-uppermiddleincome-per-world-bank-classification

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Cite as: Algeria's development and prosperity rankings. CLSTR, https://clstr.news/situations/algerias-development-and-prosperity-rankings