DZWatch can report that the African Development Bank (AfDB) has significantly upgraded its economic growth projections for Algeria, forecasting a robust 4.1% in 2026, an increase from previous estimates of 3.4%, and further advancing to 4.2% in 2027. These revised figures are detailed in the AfDB Group’s 2026 “African Economic Outlook” report, unveiled during the institution’s Annual Meetings in Brazzaville.
Algeria economic growth forecast
The report underscores the Algerian economy’s remarkable resilience and its sustained growth momentum. This positive trajectory is primarily fueled by strategic public investments, the commendable performance of non-hydrocarbon sectors, and a notable improvement in key macroeconomic indicators. Amid a global landscape marked by geopolitical uncertainties and fluctuating energy markets, the AfDB highlights Algeria’s solid economic fundamentals, which continue to yield “encouraging results,” a sentiment echoed by other prominent international bodies such as the World Bank (WB) and the International Monetary Fund (IMF).
Algeria is consolidating its position as the third-largest economic power in Africa for 2025/2026, with a nominal GDP projected to exceed 268 billion dollars. The nation’s economic prospects appear bright, driven by ongoing public investments and the vigorous development of its non-hydrocarbon sectors. Algeria is also attracting considerable international attention due to its ongoing economic reforms, which aim for a radical transformation of its economic structure. The government’s commitment to sound economic governance, through enhanced revenue mobilization and optimized spending, further guarantees macroeconomic stability.
The Algerian economy has demonstrated sustained GDP growth over the past two years, largely unaffected by external shocks. This positive outlook is attributed to a synergistic combination of factors, including continued large-scale infrastructure projects and Algeria’s increasing attractiveness to both domestic and foreign investors. The AfDB report confirms Algeria’s strong macroeconomic indicators, even amidst global tensions, energy market volatility, and worldwide economic uncertainties. These projections align closely with Algeria’s 2026 Finance Law, which also anticipates 4.1% economic growth in 2026, albeit forecasting a slightly higher 4.4% for 2027 compared to the AfDB’s 4.2%.
Furthermore, the AfDB notes that Algeria’s economy has consistently shown “good results,” supported by robust manufacturing and agricultural production, alongside strong investment and household consumption. In terms of human development, the report highlights Algeria’s Human Development Index (HDI) ranking it among Africa’s most developed nations. The report also indicates a significant decline in inflation, from 4.4% in 2024 to an estimated 1.7% in 2025, primarily due to a slowdown in food price increases. On the social front, public social policies aimed at ensuring access to basic social services have contributed to improved social indicators and reduced inequalities, reinforcing social services across the nation.
Related topics: Algeria economic growth, AfDB forecast, non-hydrocarbon sector, public investment, macroeconomic stability, human development
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