Algerian Radio
The African Development Bank (AfDB) Group projects that Algeria’s real Gross Domestic Product (GDP) will grow by 4.1% in 2026, a significant increase from previous forecasts of 3.4%. The growth is expected to reach 4.2% in 2027, according to the Bank's "African Economic Outlook 2026" report.
The report, presented in Brazzaville during the annual meetings of the African financial institution, noted that the Algerian economy is expected to maintain its growth momentum, supported notably by public investments and the development of non-hydrocarbon sectors.
The document also highlighted that Algeria continues to record robust macroeconomic indicators despite a global context marked by geopolitical tensions and fluctuations in energy markets affecting the global economy.
The AfDB's projections align with the estimates in the 2026 Finance Act, which forecasts economic growth of 4.1% for the year 2026. However, the Finance Act anticipates a higher growth rate of 4.4% for 2027, compared to the 4.2% projected by the AfDB for the same period.
According to the AfDB, the Algerian economy has continued to deliver "good results," bolstered by "strong industrial and agricultural production," alongside investment and household consumption.
Regarding human development, the continental institution noted that Algeria's Human Development Index (HDI) ranks the country among the most developed in the African continent.
The report also recorded a significant decline in inflation, dropping from 4.4% in 2024 to 1.7% in 2025, driven by a slowdown in food price increases.
On the social front, the document emphasized that the social policies pursued by public authorities to ensure access to basic social services have contributed to improving social indicators and reducing inequalities.
