Algeria’s short-term economic prospects have improved significantly in 2023, thanks to rising oil prices and a series of reforms enacted in 2022. These reforms have led to notable growth through increased exports. Algeria aims to diversify its sources of income and boost non-oil and gas exports, with a target of exceeding $13 billion by 2024. The government’s efforts to increase exports have created a positive chain reaction across various sectors, contributing to tangible economic growth.
The IMF forecasts Algeria’s economic growth rate to reach 3.4% in 2024, ranking it seventh among the highest growth rates outside the hydrocarbon sector among the nine largest Arab oil economies. Algeria and Saudi Arabia are highlighted as having sufficient foreign exchange reserves to cover merchandise import needs in 2024. Algeria’s foreign exchange reserves have seen a substantial increase, reaching $85 billion by September 2023. The IMF applauds Algeria’s measures to diversify its economy and praises legislative reforms aimed at strengthening governance and reducing corruption risks. This positive economic outlook sets Algeria on a promising path beyond hydrocarbons, showcasing its economic potential in the Arab world.
Economic Growth Beyond Hydrocarbons in 2024: Optimistic Outlook for Algeria
