IMF raises Algeria's 2026 growth forecast amid global tensions
via Algérie3602 min read
The International Monetary Fund has increased its growth forecast for Algeria in 2026 to 3.8%, up from 2.9% anticipated in October 2025. This revision, detailed in the "World Economic Outlook" report, indicates a more robust economic dynamic than previously expected, despite global geopolitical tensions and trade slowdowns. The IMF projects Algeria's economic activity to grow by 3.4% in 2025, stabilize around 3.5% in 2027, and reach 3.8% in 2026. This growth is driven by the hydrocarbon sector, supported by international demand for natural gas, and increasingly by non-hydrocarbon activities such as mining and manufacturing. The report highlights a gradual transformation of the economic model, with diversification efforts beginning to show results, though hydrocarbon dependence remains significant. Algeria's external balances are strong, with a current account surplus estimated at 1.8% of GDP in 2026, a nominal GDP of around 275 billion dollars, and foreign exchange reserves bolstered by energy exports. These factors provide Algeria with room to maneuver against external shocks. An improvement in the labor market is also expected, with unemployment projected to slightly decrease to 11.2%, supported by public investments and ongoing industrial projects. Other institutions, such as the World Bank and the African Development Bank, also project similar growth rates for Algeria in 2026, reinforcing the credibility of the overall scenario. Favorable indicators include controlled inf
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Rachida Brakni, a Franco-Algerian actress, director, and singer, has declined the Legion of Honor, France's highest civilian award, after her name appeared on the prestigious July 14th civil promotion list. Brakni announced her decision on Instagram, stating that the "question of honor" extends beyond official medals. She expressed surprise at the nomination, which she was not informed about in advance. The 49-year-old actress explained that her sense of honor is a "precious moral duty" she strives to apply daily in her work, writing, and life choices, valuing the esteem of those important to her more than any distinction. Brakni attributes her strong principles to her late father, Kaddour, an Algerian immigrant worker, who instilled in her a strict upbringing and courage, providing her with a "passport to freedom" that fueled her social and artistic success, including César and Molière awards in 2002. Her book, "Kaddour," explores this spiritual connection and the complexities of exile, recounting the repatriation of her father's body to Tipaza, Algeria, during the pandemic, and honoring a generation of uprooted men between France and Algeria.
Saudia Airlines has inaugurated a new direct flight route connecting Oran, Algeria, to Medina, Saudi Arabia, starting July 13. This non-stop service aims to strengthen economic and cultural ties between the two countries and enhance passenger comfort, particularly for pilgrims traveling for Hajj or Umrah. The flight from Oran's Ahmed Ben Bella Airport to Medina's Mohamed Bin Abdulaziz Airport takes approximately 5 hours and 15 minutes, covering a distance of about 4,040 kilometers. Saudia Airlines is deploying its Boeing 777-300 aircraft for this route. Additionally, a new Saudia Airlines physical agency has opened at Ahmed Ben Bella Airport in Oran, offering travelers the convenience of purchasing tickets, obtaining information, and managing travel arrangements directly at the airport. A one-way ticket from Oran to Medina is available from 107,205 DA. This new connection expands the network of direct flights from Algeria to major Saudi cities, complementing existing services to Jeddah, which operates twice weekly with a flight duration of 6 hours 15 minutes to 6 hours 30 minutes.
Must ReadAlgeria is experiencing a significant demographic shift, with its synthetic fertility index falling from nearly 8 children per woman after independence to approximately 2.5 children today. This data was presented by Mohamed Talhi, Secretary General of the Ministry of Health, during the World Population Day celebration. Despite this decline, Algeria maintains a young demographic structure, which Talhi highlighted as an opportunity to leverage a "demographic dividend" through continued investment in human capital, youth empowerment, and their contribution to national development. He also emphasized the need for proactive policies focusing on quality access to education, employment, health, housing, and family stability in response to global demographic transformations. The decrease in birth rate is attributed to major socio-economic changes, including increased education levels, growing urbanization, evolving marriage patterns such as a later age for marriage, greater female participation in the workforce, and improved living conditions. While the decline is notable, Algeria remains a leader in birth rates within the Maghreb region. A recent study by France's National Institute of Demographic Studies INED indicates that Algeria recorded a rate of 2.61 children per woman in 2024, compared to Morocco's 1.97 in 2023 and Tunisia's 1.58 in the same year, with Tunisia projected to drop to 1.53 in 2024. The study also noted a unique period for Algeria, where its birth rate rebounded a