According to the report, Algeria's economic expansion is bolstered by the oil and gas, industrial, construction, and services sectors.
Algeria's economic recovery is gaining momentum, with its gross domestic product (GDP) growth projected at 3.6% in 2022, 4.2% in 2023, 4.0% in 2024, and 3.7% in 2025, as per the African Development Bank Group's Country Report 2024. This report will be officially presented in Algiers in mid-September.
The report highlights that Algeria's economic growth is primarily driven by the oil and gas, industrial, construction, and services sectors. However, it also notes a shift in employment patterns, with a notable movement towards the services sector at the expense of agriculture and manufacturing. Despite this shift, the report emphasizes that the overall structure of GDP has remained largely unchanged. Consequently, the report recommends that Algeria implement further reforms to accelerate the structural transformation of its economy.
“For Algeria, the reform of the global financial architecture is an opportunity to position itself as a donor country to support progress towards the development programmes of other African countries,” commented Mr Lassaad Lachaal, the African Development Bank’s Country Manager for Algeria.
The reform of the international financial architecture presents an opportunity for Algeria to assume the role of a donor nation, supporting development initiatives in other African countries, as highlighted in the report. In 2023, Algeria joined the esteemed group of donors contributing to the funding cycle of the African Development Fund under AFD-16. While the nation has allocated a substantial budget of USD 1 billion to finance development projects across Africa, additional resources will be necessary to bolster climate protection measures and drive green growth initiatives.
In the short term, Algeria could improve its structural transformation by enhancing domestic funding mobilization and bolstering the sustainability of public finances, as highlighted in the document.
The reform of the international financial architecture presents an opportunity for Algeria to assume the role of a donor nation, supporting development initiatives in other African countries, as highlighted in the report. In 2023, Algeria joined the esteemed group of donors contributing to the funding cycle of the African Development Fund under AFD-16. While the nation has allocated a substantial budget of USD 1 billion to finance development projects across Africa, additional resources will be necessary to bolster climate protection measures and drive green growth initiatives.
In the short term, Algeria could improve its structural transformation by enhancing domestic funding mobilization and bolstering the sustainability of public finances, as highlighted in the document.
This report aims to facilitate constructive dialogue on macroeconomic performance and prospects, serving as a valuable resource for policymakers, governments, and development partners. It will be formally introduced to government leaders, the private sector, technical and financial partners, researchers, academics, and the media in mid-September 2024 at the Bank's local headquarters in Algiers.
The report's central theme aligns with the 2024 African Economic Outlook report for the entire continent, titled: “Driving Africa’s Transformation – The Reform of the Global Financial Architecture”.