ALGERIA – Algeria’s economic recovery is gathering momentum, with its gross domestic product (GDP) projected to rise by 4.0 percent in 2024, building on a growth of 3.6 percent in 2022 and 4.2 percent in 2023. This assessment comes from the recent Country Report 2024 by the African Development Bank Group, which will be officially unveiled in Algiers in mid-September.
The report highlights that Algeria’s economic growth is primarily driven by the oil and gas, industrial, construction, and service sectors. It notes a shift in employment toward the services sector, at the expense of agriculture and manufacturing. While the report acknowledges that the overall structure of GDP remains unchanged, it emphasizes the need for further reforms to accelerate the structural transformation of the economy.
According to the report, Algeria has a unique opportunity to redefine its role in the international financial landscape as a donor nation, contributing to development programs for other African countries. The report highlights Algeria’s recent inclusion in the group of donors financing the African Development Fund’s AFD-16 cycle. The country has committed USD 1 billion to development projects across Africa, though additional resources will be essential for climate protection and advancing green-growth initiatives.
In the short term, Algeria can bolster its structural transformation by enhancing domestic funding mobilization and ensuring the sustainability of public finances, the document emphasizes.
This report is designed to foster political dialogue regarding macroeconomic performance and future prospects, serving as a vital resource for political decision-makers, governments, development partners, researchers, and media. The official presentation will take place in mid-September 2024, at the bank’s headquarters in Algiers.
The report aligns with the overarching theme of the 2024 African Economic Outlook titled: “Driving Africa’s Transformation – The Reform of the Global Financial Architecture.”
