The African Development Bank (AfDB) has projected Algeria’s economy to grow by 4.1% in 2026, in a significant upward revision from earlier forecasts of 3.4%, with growth expected to accelerate further to 4.2% in 2027.
The projections were unveiled in the Africa Economic Outlook 2026 report, presented during the AfDB’s annual meetings in Brazzaville. The report confirmed that Algeria’s economy continues to maintain steady momentum despite mounting global challenges.
The report told dzwatch that this positive dynamic is driven primarily by strengthened public investment and strong performance in non-hydrocarbon sectors, reflecting Algeria’s determined push to diversify its economy beyond oil and gas revenues.
Notably, inflation dropped sharply from 4.4% in 2024 to just 1.7% in 2025, attributed to slowing food price increases. The AfDB also highlighted Algeria’s improving human development indicators, ranking the country among Africa’s most advanced nations in this regard.
The AfDB projections align closely with Algeria’s 2026 Finance Law, which also targets 4.1% growth, underscoring the credibility of the country’s economic trajectory.
