Algeria's Economic Growth Rate Revised Upwards for 2026

Algeria's Economic Growth Rate Revised Upwards for 2026

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04/09/2026 - 13:52

The World Bank (WB) has revised upwards its economic growth forecast for Algeria for 2026, highlighting that the country stands as an exception within the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) region.

In its latest edition of the Economic Monitor for the MENAAP region, published on its website, the World Bank forecasts a real Gross Domestic Product (GDP) growth for Algeria of 3.7%. This represents a 0.2-point increase compared to the projections established last January (3.5%).

Algeria thus ranks among the only three countries in the MENAAP region for which the World Bank has revised its anticipated growth rate upwards.

Thus, the overall growth of the region (excluding Iran, due to a lack of data) is expected to reach 1.8% in 2026, which is 2.4 percentage points lower than the initial projections from January. The MENAAP region's economies recorded a growth rate of 4% in 2025.

The outlook for Saudi Arabia—the largest economy in this group—has been revised downwards, with a projection of 3.1% (compared to 4.3% previously).

Meanwhile, the real GDP of Iraq, Kuwait, and Qatar is expected to contract by 8.6%, 6.4%, and 5.7%, respectively, following significant downward revisions (-15.1%, -9%, and -11%).

The increase in Algeria's export revenues is expected to be reflected in the current account balance, whose deficit would be significantly reduced, dropping from -5.9% in 2025 to -2.4% in 2026, according to the same source.

Source
Algerian Radio Multimedia