Publication: Algeria Economic Update, Fall 2025: Responding to Climate Challenges and Supporting Sustainable Development
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2025-12-03
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2025-12-15
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During H1-2025, non-extractive sectors and dynamic investment supported economic growth. Inflation continued decelerating in the first nine months of 2025, driven by decreasing food prices. Decreasing hydrocarbon exports and expanding investment-driven imports exerted significant pressure on the external balance in H1-2025. The fiscal deficit widened significantly in 2024 as hydrocarbon revenues contracted. Growth is expected to accelerate slightly in 2025, driven by resilient non-hydrocarbon activity. External and fiscal imbalances are expected to persist amid relatively low hydrocarbon prices. The return of the twin deficits underlines the Algerian economy’s exposure to hydrocarbon prices fluctuations. Rising risks from climate change underline the importance of integrating climate considerations into Algeria’s development strategy. Algeria’s growth strategy also needs to account for global decarbonization efforts and other structural factors challenging its hydrocarbon-dependent economy.
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“World Bank. 2025. Algeria Economic Update, Fall 2025: Responding to Climate Challenges and Supporting Sustainable Development. © World Bank. http://hdl.handle.net/10986/44072 License: CC BY-NC 3.0 IGO.”
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