After decades of heavy reliance on oil and gas, Algeria is seeking to diversify its economy by expanding industry, agriculture, services and mining.
Early signs of progress are emerging. In 2024, non-hydrocarbon activity grew by 4.8%, with growth reaching 5.4% in the first half of 2025. The government is focusing on sectors including agri-food, manufacturing, infrastructure and mining, while seeking to attract more private investment.
Another key objective is to boost non-hydrocarbon exports and gradually reduce the economy’s dependence on energy revenues.
Despite these gains, oil and gas remain crucial to Algeria’s exports and public finances. Any decline in energy revenues therefore continues to put pressure on the country’s fiscal position.
According to the IMF, the budget deficit exceeded 10% of GDP in 2025, while public debt rose above 50% of GDP.
