ALGIERS — Algeria’s economy grew steadily in 2024, driven by strong momentum in the hydrocarbon sector, according to World Bank Senior Economist Cyril Desponts, who spoke in Algiers on Monday.
“In 2024, economic growth was robust. The non-hydrocarbon sector’s gross domestic product (GDP) expanded by 4.8%, a highly respectable rate,” Desponts said during a press conference held on the sidelines of his mission in Algeria, ahead of the release of the World Bank’s periodic economic report on the country.
Desponts attributed this growth to dynamic private consumption and active investment, with inflation declining from 9.3% in 2023 to 4% in 2024. He explained that strong agricultural performance, despite lower rainfall, helped moderate food prices, contributing to this decline.
Looking ahead, the World Bank projects an increase in hydrocarbon production and exports, primarily driven by Algeria’s enhanced oil production quota within OPEC+.
The World Bank report, titled Accelerating Productivity Gains for Diversified and Resilient Growth, emphasizes the need to boost productivity and gradually shift employment toward more productive sectors, such as agriculture and construction.
“Productivity gains, particularly in manufacturing and services, are essential to unlocking Algeria’s growth potential,” Desponts stressed. He added that “a transition to higher value-added sectors, supported by gradual fiscal rebalancing, targeted reforms to stimulate private investment, and a skills development strategy, will be crucial for building a more resilient economy.”
Amel Henider, an economist at the World Bank, noted that investment “remained dynamic” in 2024, supporting domestic demand as well as the manufacturing and services sectors. “At the same time, we are seeing production accelerate by around 5%, thanks in particular to the strong performance of several sectors, notably an excellent grain harvest,” she said.
Kamel Braham, the World Bank’s resident representative in Algeria, told journalists, “Algeria is maintaining a solid growth trajectory. However, its fiscal and external balances remain highly sensitive to fluctuations in oil and gas prices.” He emphasized that accelerating structural transformation is “essential to strengthen resilience and support sustainable growth.”
Braham also highlighted the robust technical cooperation programs between the World Bank and Algeria in various areas. He cited projects in partnership with the Algerian Investment Promotion Agency (AAPI), as well as initiatives to develop non-hydrocarbon exports and promote women’s entrepreneurship, which align with the Algerian government’s policies.
