Algeria’s economy is demonstrating resilience, particularly in its non-hydrocarbon sectors, according to a recent economic monitoring report from the World Bank. The report highlights a period of sustained and robust growth outside of the oil and gas industry during the first half of 2025.<\/p>\n
Real GDP growth reached 4.1% year-on-year, fueled by strong investment and private consumption. This positive trend is attributed to economic reforms initiated under President Abdelmadjid Tebboune, fostering diversification and sustainable development.<\/p>\n
The World Bank emphasizes that this growth is broad-based, supported by significant agricultural output and expansion within the services sector. Data indicates that this inclusive growth persisted throughout the first half of 2025.<\/p>\n
On the inflation front, Algeria has also witnessed improvements. Inflation continued its downward trajectory, registering at 1.7% year-on-year during the first nine months of 2025. This moderation is primarily attributed to declining food prices.<\/p>\n
In response to these positive developments, the Bank of Algeria reduced its key interest rate from 3% to 2.75% at the end of August 2025. It also lowered the mandatory reserve ratio from 3% to 2%.<\/p>\n
Looking ahead, the international institution anticipates continued strong growth in the non-hydrocarbon sector, with a slight acceleration to 3.8% expected for the full year 2025. The World Bank stresses the importance of further diversifying the economy and integrating climate considerations into the development strategy.<\/p>\n
Appropriate adaptation policies are crucial to protect production and households from the increasing risks of climate change and water scarcity.<\/em> In this context, Algeria, under the direction of President Tebboune, has increased the number of operational seawater desalination plants to 19, with a total production capacity exceeding 3.7 million cubic meters per day. This allows for the provision of potable water to approximately 15 million citizens, making Algeria a leader in Africa and second in the Arab world in terms of seawater desalination production capacity. A new program to construct six additional desalination plants is underway following the completion of the initial program.<\/p>\n The World Bank underscores the importance of these initiatives for Algeria’s long-term economic sustainability and resilience.<\/strong><\/p>\n