According to the latest World Bank report on Algeria’s economic outlook for autumn 2025, the Algerian economy continued its upward trend this year, posting 4.1% growth in the first half and an expected expansion of 3.8% for the full year. Non-hydrocarbon sectors recorded a 5.4% growth rate, while inflation eased to 1.7% over the first nine months, supported by declining food prices and a stable exchange rate.
The report notes that non-hydrocarbon growth is expected to remain robust, albeit with a slight slowdown projected in 2026–2027. GDP growth is forecast at 3.5% in 2026 and 3.3% in 2027. The continued implementation of reforms — particularly those aimed at improving the business climate, expanding access to finance and strengthening competition — will be crucial to supporting diversification and job creation.
“The report also highlights the importance of better integrating the climate dimension into development policies. This would help preserve the competitiveness of the economy at a time when trade partners are stepping up decarbonization efforts, notably with the entry into force next year of the European Union’s Carbon Border Adjustment Mechanism (CBAM),” the World Bank said in a press release.
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