Algeria maintains fourth position in African economy rankings despite slow growth and hydrocarbon dependence
via Algérie3603 min read
Algeria is projected to maintain its position as the fourth-largest economy in Africa by 2031, with an estimated GDP of $328 billion, according to an April 2026 report from the International Monetary Fund IMF. In 2025, Algeria's GDP was estimated at $285.72 billion. However, the report highlights a significant disparity in growth rates compared to other African nations. Over a six-year period, Algeria's economy is expected to grow by only 14.67%, which is the slowest rate among the top African economies. In contrast, Ethiopia is projected to see a 122% increase, the Democratic Republic of Congo an 89% increase, and Egypt an 83% increase. The IMF report attributes Algeria's slow progression and persistent reliance on hydrocarbons, which account for 95% of its export revenues, making its GDP vulnerable to global market fluctuations. The report also points out the challenge of economic statistics, noting a significant gap between the official exchange rate 1 USD = 132.29 DZD and the parallel market rate 1 USD ≈ 238 DZD. If assessed using the parallel market rate, Algeria's national wealth for 2025 would be $158 billion, considerably lower than the official figure. Despite these challenges, the report identifies potential for industrial resilience through large-scale projects, such as a $2.5 billion investment in the steel industry in Oran and the exploitation of the Gara Djebilet iron deposit. These initiatives could alter future projections if industrial integration accelerates
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