AfDB's 2024 Report Highlights Algeria’s Economic Growth and Reform Opportunities

The African Development Bank Group’s Country Report for 2024 projects GDP growth of 4.0% in 2024 and 3.7% in 2025.

Algeria’s economic recovery is showing robust signs of progress, with its gross domestic product (GDP) rising by 3.6% in 2022 and 4.2% in 2023. The African Development Bank Group’s Country Report for 2024 projects GDP growth of 4.0% in 2024 and 3.7% in 2025. The report will be officially presented in Algiers in mid-September.

The report attributes Algeria’s growth to the oil and gas, industrial, construction, and services sectors. It notes a shift in employment towards the services sector, which has come at the expense of agriculture and manufacturing. Despite this shift, the report indicates that the overall structure of GDP has remained relatively unchanged. It emphasizes the need for further reforms to accelerate the structural transformation of Algeria’s economy.

Mr. Lassaad Lachaal, the African Development Bank’s Country Manager for Algeria, highlighted that the ongoing reform of the global financial architecture presents Algeria with an opportunity to emerge as a donor country supporting development programs across Africa. Algeria joined the group of donors contributing to the African Development Fund (AFD-16) in 2023 and has allocated USD 1 billion to development projects in Africa. However, additional resources will be needed to support climate protection and green-growth initiatives.

The report suggests that Algeria could bolster its structural transformation by improving domestic funding mobilization and strengthening public finance sustainability. The forthcoming report aims to enhance political dialogue on Algeria’s macroeconomic performance and prospects and will serve as a critical resource for decision-makers, development partners, and other stakeholders.

The theme of this year’s report aligns with the African Economic Outlook’s focus for 2024, titled “Driving Africa’s Transformation – The Reform of the Global Financial Architecture.” The official presentation will take place at the African Development Bank’s local headquarters in Algiers.