Algeria: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Algeria

The 2026 Article IV Consultation discusses that Algeria is seeking to enhance economic growth and resilience and diversify its economy away from hydrocarbons. In order to achieve this, the authorities are pursuing large foundational investment projects, import substitution and nonhydrocarbon export promotion policies, alongside reforms to enhance tax administration and public financial management, improve governance and the business environment, and to reduce informality through digitalization and tax-regime reforms. Algeria’s near-term outlook remains broadly positive, as strong gas demand, OPEC+ quota increases, and higher hydrocarbon prices are expected to modestly boost hydrocarbon output, notwithstanding limited spare production capacity. However, fiscal buffers have been depleted and external buffers have eroded, while large fiscal deficits continue to pose significant financing pressures. The hydrocarbon windfall provides an opportunity to rebuild buffers. Diversification efforts are continuing, notably in mining, agriculture, and nonhydrocarbon exports. Far-reaching reforms are needed to support stronger, more resilient, private sector-led growth.