International Monetary Fund Forecasts 3.8% Growth for Algeria in 2026

The International Monetary Fund (IMF) projects robust economic growth for Algeria, forecasting a 3.8% expansion in 2026. This positive outlook, detailed in the IMF's latest report on Article IV consultations with Algeria, follows growth rates of 3.7% in 2024 and 3.9% in 2025, driven significantly by strong investments. The Fund has praised Algeria's ongoing reform program, which it notes has been instrumental in supporting economic diversification and strengthening overall growth.

The report highlights particular dynamism within Algeria's non-hydrocarbon sector, which registered a 4.3% growth in 2025 and is expected to reach 4% in 2026. Furthermore, the IMF commended Algeria's efforts to enhance financial stability and inclusion, noting that Algerian banks maintain adequate levels of liquidity, profitability, and capitalization. The country's rapid exit from the Financial Action Task Force's (FATF) enhanced surveillance list was also acknowledged as a significant achievement in strengthening financial compliance.

Algeria's economic prospects for the short term remain generally positive, with rising hydrocarbon prices anticipated to bolster export revenues and public finances. The IMF forecasts a reduction in the current account deficit for 2026, which is expected to allow Algeria to progressively rebuild its financial safety margins. External debt is projected to remain exceptionally low, at approximately 1% of GDP in 2026, down from 1.1% in 2025, with a further decrease to 0.5% by 2031. The Fund also emphasized that continued structural reforms and accelerated diversification could further improve the business climate, attract private investment, and foster stronger, more resilient growth in the medium term, including by deepening trade and energy relations with Europe and Africa.