Algeria’s surge: 5% growth in 2026!

On Sunday, Finance Minister Abdelkrim Bouzred unveiled the 2026 budget bill to Algeria’s National People’s Assembly (APN), chaired by Brahim Boughali and attended by key government figures.

He outlined the three-year fiscal roadmap, emphasizing 2026, amid global and domestic challenges yet Algeria’s economy shows clear resilience.

Bouzred highlighted a steady recovery driven by government pushes in investment, diversification, major projects, and exports, sustaining five years of growth. Forecasts: 4.1% GDP rise in 2026, 4.4% in 2027, and 4.5% in 2028, fueled by non-hydrocarbon sectors.

Most sectors shone in 2025: agriculture up 6.1%, industry 5.2%, services 3.5%, and construction 3.3%. “These are solid signs of stability and momentum,” he said.

Budget deficit? Slashing to 4,000 billion DA by year-end 2025 (from a projected 9,200 billion), thanks to unspent economic allocations (100 billion DA untouched). Overall 2025 spending hits just 70% with one month left, mainly in investments. Deficits as % of GDP: 12.4% in 2026, 11.4% in 2027, 11.2% in 2028.

Global edge: 5% growth in 2026 (despite hydrocarbons dipping 0.5%), topping the world average of 3% per IMF and World Bank.

2026 budget: a record 17,636.7 billion DA (up from 16,794 billion in 2025, with +1,000 billion in allocations) he biggest since independence. Revenues: 8,009 billion DA.

Social transfers dominate at nearly 6,000 billion DA, now including admin expenses like universities (2,800 billion DA). Unemployment aid: 420 billion DA. Pension fund (CNR): 424 billion DA. Plus subsidies for essentials.

Bouzred wrapped up noting procedural tweaks to ease taxes and bolster anti-money laundering/terror financing rules, aligning with FATF commitments.