Economy of Algeria

Economy of Algeria
	Algiers, the capital and economic center of the country
Currency	Algerian dinar (DZD, دج)
Fiscal year	Calendar year
Trade organisations	AU, AfCFTA, OPEC, GECF, AMU, CAEU, G20, G24, G77, WTO (observer), and others
Country group	Developing/Emerging; Upper-middle income economy;
Statistics
Population	47.251 million (2025 est.)
GDP	$288.01 billion (nominal; 2025); $915.79 billion (PPP; 2026);
GDP rank	45th (nominal; 2026); 36th (PPP; 2026);
GDP growth	3.4% (2025); 2.9% (2026f); 2.7% (2027f); 2.7% (2028f);
GDP per capita	$6,100 (nominal; 2025); $18,510 (PPP; 2025);
GDP per capita rank	111th (nominal; 2025); 100th (PPP; 2025);
GDP by sector	agriculture: 13.1%; industry: 37.8%; services: 45.6%; (2023 est.);
GDP by component	Household consumption: 40.8%; Government consumption: 17.9%; Investment in fixed capital: 32.8%; Investment in inventories: 4.9%; Exports of goods and services: 23.6%; Imports of goods and services: -20.1%; (2023 est.);
Inflation (CPI)	2.7% (August 2025)
Base borrowing rate	4.5% (2024)
Population below poverty line	1.5% (2011); 6.2% on less than $15.50/day (2011);
Gini coefficient	27.6 low (2011)
Human Development Index	0.763 high (2023) (96st); 0.601 medium IHDI (2023);
Corruption Perceptions Index	34 out of 100 points (2024, 107th rank)
Labour force	13,294,279 (2023); 36% employment rate (2024);
Labour force by occupation	agriculture: 25.8%; industry: 30.9%; services: 58.4%; (2011 est.);
Unemployment	9.7% (2024)
Main industries	petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing, manufacturing
External
Exports	$48.03 billion (2024)
Export goods	petroleum, natural gas, petroleum products, nitrogen fertilizers, cement (2023)
Main export partners	EU 64.97% Italy 24.5%; France 14.4%; Spain 12.5%; Netherlands 3.38%; Germany 2.66%; ; South Korea 7.56%; United States 5.23%; Tunisia 4.05%; United Kingdom 3.34%; Turkey 3.06% (2024);
Imports	$43.621 billion (2024)
Import goods	capital goods, chemicals, foodstuffs, consumer goods, cars
Main import partners	EU 36.74% France 11.9%; Italy 6.72%; Germany 5.08%; Spain 1.89%; Netherlands 1.75%; ; China 26.8%; Turkey 6.58%; Brazil 5.88%; Saudi Arabia 2.49%; Egypt 2.28% (2024);
FDI stock	$29.05 billion (31 December 2017 est.); Abroad: $1.893 billion (31 December 2017 est.);
Current account	$-10.596 billion (-3.7% of GDP, 2025 est.)
Gross external debt	$558.64 million (2024 est.)
Net international investment position	$50.616 billion (December 2024)
Public finances
Government debt	54% of GDP (2025 est.)
Foreign reserves	$47.056 billion (October2025)
Budget balance	-3.08% (of GDP) (2023)
Revenues	DZD 8 trillion (2026 proj.)
Expenses	DZD 17.626 trillion (2026 proj.)
	All values, unless otherwise stated, are in US dollars.

The economy of Algeria is a mixed market economy. Since independence in 1962, Algeria has launched major economic projects to build up a dense industrial base. However, despite these major achievements (universal education and infrastructure projects), the Algerian economy has gone through various stages of turbulence.

In the 1980s, the Algerian economy experienced major difficulties. The 1980s oil glut dealt a heavy blow to a virtually rentier economy, during the period of anti-scarcity and stabilization plans. In the early 1990s, Algeria embarked on a series of structural reforms, making the transition to a market economy a reality.

The Algerian economy remains highly dependent on hydrocarbon rents, which represent 60% of government revenue and 90% of export revenue, but the country is working heavily in diversifying and establishing internationally competitive industrialization.

The 2017 report on Algeria by business intelligence and consultancy firm Oxford Business Group (OGB), highlights the efforts devoted by the country to strengthening and diversifying its economy against the backdrop of falling oil prices. The report highlights the growing contribution of the private sector to GDP, in particular the role of small and medium-sized enterprises (SMEs) supported by new measures; as well as the financial services sector, which has seen positive developments such as the introduction of online payments.

Despite the efforts made, the country still faces a number of short-term problems, including the need to diversify the economy, strengthen political, economic and financial reforms, improve the business climate and reduce social inequality between regions, in order to achieve better economic growth. Algeria has the triple leverage of energy, mining and agriculture to contribute, in the long term, to containing the supply crises in energy, rare earths (minerals useful for technology) and food.

Published in 2023, the World Bank's report on the Algerian economy calls for the acceleration of institutional and macro-economic reforms, and paints a positive picture for the country's economy. The World Bank notes that the promulgation in 2022 of the new Investment Law and the publication of its implementing regulations, the abolition in 2020 of the 51/49 rule for non-strategic sectors, and the publication of the new Hydrocarbons Law in 2019 are positive steps, but must tackle the ecosystem, including paralyzing bureaucracy, with greater visibility in socio-economic policy.

Continued implementation of government structural reform programs, creating greater openness to the private sector, improving the economy’s competitiveness, and strengthening investment in human capital are all essential to the flourishing and resilience of the Algerian economy.