Algerian President Abdelmadjid Tebboune has officially approved the 2025 budget, forecasting an economic growth rate of 4.5%, as announced by the presidency on Sunday.
The new budget is built on a reference oil price of 60 USD per barrel for the period spanning 2025 to 2027. The government anticipates that GDP growth will accelerate, reaching 4.5% in 2025-2026, up from 4.2% in 2024. The non-hydrocarbon sector is expected to see a growth rate of 5%, signaling a shift towards economic diversification.
For 2025, public spending has been set at 16.8 trillion dinars (approximately 126 billion USD), marking a 9.9% increase from the previous year. Projected revenues for the year stand at 8.5 trillion dinars, reflecting a 3.5% rise, while the budget deficit is expected to reach 8.3 trillion dinars.
Key economic indicators outlined in the budget include projected exports of 50.9 billion USD, imports of 46.07 billion USD, and a trade surplus of 4.83 billion USD. The balance of payments is expected to show a surplus of 1.17 billion USD, and foreign exchange reserves are forecast to reach 72.95 billion USD, sufficient to cover 16 months of imports.
A recent World Bank report highlighted Algeria’s robust economic performance in 2024, with growth reaching 3.9% in the first half of the year, driven by a resilient agricultural sector. Inflation improved significantly, falling to 4.3% during the first nine months of 2024.
The report also emphasized the crucial role of non-hydrocarbon industries and investment in maintaining the country’s economic momentum.
