Economy of Algeria

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Economy of Algeria

Night in Downtown Algiers
Currency	Algerian dinar (DZD, دج)
Trade organisations	AU, AfCFTA, OPEC, GECF, CAEU, and others
Country group	Developing/Emerging[1] Upper-middle income economy[2]
Statistics
Population	46,278,751 (2024 est.)[3]
GDP	$266.78 billion (nominal, 2024 est.)[3] $826.14 billion (PPP, 2024 est.)[3]
GDP rank	50th (nominal, 2024) 39th (PPP, 2024)
GDP growth	4.2% (2023)
GDP per capita	$5,722 (nominal, 2024 est.)[3] $17,770 (PPP, 2024 est.)[3]
GDP per capita rank	109th (nominal, 2024) 99th (PPP, 2024)
GDP by sector	agriculture: 13.3% industry: 39.3% services: 47.4% (2017 est.)[4]
Inflation (CPI)	3.0% (Q1 2024)[5]
Population below poverty line	1.5% (2011)[6] 6.2% on less than $15.50/day (2011)[7]
Gini coefficient	27.6 low (2011)[8]
Human Development Index	0.745 high (2022) (91st)[9] 0.598 medium IHDI (2021)[10]
Labour force	13,425,064 (2023)[11] 6.9% employment rate (2017)[12]
Labour force by occupation	agriculture: 25.8% industry: 30.9% services: 58.4% (2011 est.)[4]
Unemployment	5.4% (2019)[3]
Main industries	petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
External
Exports	$60.38 billion (2023 est.)[13]
Export goods	petroleum, natural gas and petroleum products 89% (2021)[14]
Main export partners	Italy 20.7%  Spain 14.3%  France 13%  United States 4.75%  South Korea 4.75%  Netherlands 4.19%  United Kingdom 3.61%  Greece 3.58%  Turkey 3.05%  Brazil 2.95% (2021)[14]
Imports	$34.3 billion (2021 est.)[14]
Import goods	capital goods, foodstuffs, consumer goods
Main import partners	China 18.5%  France 12.7%  Spain 6.4%  Germany 6.31%  Italy 6.05%  Turkey 4.95%  Brazil 4.43%  Russia 4.31%  Argentina 3.38%  Canada 2.51% (2021)[14]
FDI stock	$29.05 billion (31 December 2017 est.)[4] Abroad: $1.893 billion (31 December 2017 est.)[4]
Current account	$5.28 billion (2023 est.)[3]
Gross external debt	$671 million (2022 est.)[15]
Public finances
Government debt	55.1% of GDP (2023 est.)[3] [note 1]
Budget balance	-3.08% (of GDP) (2023)[16]
Revenues	$98 billion (2024 est.)[17]
Expenses	$114 billion (2024 est.)[17]
Foreign reserves	$85 billion (September 2023)[18]
All values, unless otherwise stated, are in US dollars.

The economy of Algeria deals with Algeria's current and structural economic situation. Since independence in 1962, Algeria has launched major economic projects to build up a dense industrial base. However, despite these major achievements (roads, freeways, universities, hospitals, factories, housing, metro and tramway systems, etc.), the Algerian economy has gone through various stages of turbulence.

In the 1980s, the Algerian economy experienced major difficulties. The oil counter-shock of 1986 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.

In 2012, the Algerian economy remains highly dependent on hydrocarbon rents, which represent the country's main source of revenue, without having succeeded 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 micro-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.^[19]

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