The Finance Minister, Laaziz Fayed, has stated that Algeria’s public debt level remains below the benchmark threshold for emerging markets and is also lower than that observed in most Arab and Mediterranean countries.
With public debt at approximately 49.61% of GDP by the end of 2024, the country is well below the critical threshold of 60-70% commonly accepted for emerging economies.
Unlike European countries such as Greece, Spain, or France, where public debt exceeds 110% of GDP, Algeria exhibits cautious management of its public finances.
This situation provides the Treasury with a certain “room to maneuver” to mobilize more resources through the capital markets. The funds raised will be used to finance the projected budget deficit for 2025 while limiting external borrowing.
Funding for Development and Social Resilience
To address socio-economic challenges, the government has allocated significant resources. Subsidies for essential goods will reach nearly 600 billion DA in 2025, aimed at mitigating the impact of global price spikes on households.
Funding investments remains a priority, with nearly 5969 billion DA allocated to 267 projects across 11 economic sectors. Locally, 1433 billion DA will be directed towards infrastructure in the provinces, with 60% of this allocated to the South and High Plateaus regions. Projects like the extension of the RN01 between Ghardaïa and El Menia, or the construction of a 60-bed hospital in Tin Zaouatine, demonstrate this commitment.
Reforms to Modernize the Algerian Economy
Economic diversification is also at the heart of priorities. The successful introduction of the Crédit Populaire d’Algérie (CPA) to the stock market in 2024 mobilized over 112 billion DA, marking a significant step in the development of the Algerian financial market.
This historic operation strengthens the credibility of the national financial system and encourages more investment.
Moreover, advances in the digitization of financial services support transparency and efficiency in public management. These reforms are crucial for attracting private capital and enhancing the country’s economic competitiveness.
With the imminent voting on the 2025 finance law, Algeria is set on a path to bolster its financial stability and support a balanced socio-economic development through strategic investments.
