Algeria is making good growth projections to reach a GDP of 400 billion dollars over the coming years.
Positive economic indicators
Algerian Finance Minister Laaziz Faid announced that Algeria is on track to reach a GDP of $400 billion in the coming years, surpassing its current level of $237 billion. This growth will be based on strong investment dynamics and positive economic indicators.
Mr. Faid made the statement during a press conference held at the ministry’s headquarters, on the sidelines of the conclusions of the Spring Meetings of the World Bank Group and the International Monetary Fund (IMF) in Washington. He stressed that Algeria currently occupies third place in Africa in terms of GDP and that the country has “great assets” to support its economic growth.
Digital Dinar Project
Among these assets, the minister cited domestic and foreign investments, the favorable investment climate, and the establishment of a National Payments Committee (NPC) to promote financial inclusion. He also mentioned the Central Bank’s digital Dinar project, which should help fight the parallel market.
Laaziz Faid was optimistic about the future of the Algerian economy, saying that the Algerian dinar has already recorded an increase of 4.5% against the US dollar and that it “will progress further in the future”. He also highlighted the importance of digitalization of the economy and financial services to stimulate growth and reduce the informal sector.
Recent evolution of GDP in Algeria
The Algerian economy is strongly linked to hydrocarbons, which represent around 95% of the country’s exports and 40% of GDP. GDP therefore grew significantly when oil prices were high, and stagnated or declined during periods of falling prices. A look in the rearview mirror provides an idea of the recent evolution of GDP in Algeria.
From 2000 to 2010, average annual growth was 4.8%, supported by rising oil prices. Between 2011 and 2014, this growth fell to 3.2%, slowed by the global financial crisis and the fall in oil prices. From 2015 to 2019, GDP stagnated, with average annual growth of 0.2%. This period was marked by falling oil prices and insufficient diversification of the economy.
4th economy in Africa
In 2020, Algeria recorded a recession of 4.9% due to the Covid-19 pandemic and the drop in oil prices. The following year, there was a recovery of 3.1%, supported by the rise in oil prices. In 2022, growth of 3.2% was recorded, supported by the rise in hydrocarbon prices and the resumption of non-oil activity.
In 2022, Algeria’s GDP was $195 billion, making it the 4th largest economy in Africa. GDP per capita was $4,306, the highest in the Maghreb.
