Algiers, July 2025 — According to the National Statistics Office, Algeria’s GDP grew by 4.5% in the first quarter of 2025 compared to 4.2% in the same period last year. Excluding hydrocarbons, the economy expanded by 5.7%, reflecting sustained diversification efforts.
Key growth drivers came from non-hydrocarbon sectors:
The expansion was supported by strong domestic demand: gross fixed capital formation rose by 18%, and household consumption grew by 4.7%.
Meanwhile, the hydrocarbon sector declined by 2.8%. Oil extraction dropped by 1.5%, and refining by 5.5%. Exports fell by 3.8%, while imports increased by 24%.
Nominal GDP reached approximately 10 trillion dinars (around €77 billion), marking an 8% year-on-year increase. Inflation slowed to 3.3% during the same period.
Overall, the figures confirm the resilience of Algeria’s diversification strategy. However, the contraction in hydrocarbons and rising imports underscore the need for stronger support to local production and export-oriented industries.
Key growth drivers came from non-hydrocarbon sectors:
- Agriculture: +6.1%
- Food and tobacco industries: +5.6%
- Leather and footwear: +15.4%
- Trade: +8.9%
- Transport and communications: +8.3%
The expansion was supported by strong domestic demand: gross fixed capital formation rose by 18%, and household consumption grew by 4.7%.
Meanwhile, the hydrocarbon sector declined by 2.8%. Oil extraction dropped by 1.5%, and refining by 5.5%. Exports fell by 3.8%, while imports increased by 24%.
Nominal GDP reached approximately 10 trillion dinars (around €77 billion), marking an 8% year-on-year increase. Inflation slowed to 3.3% during the same period.
Overall, the figures confirm the resilience of Algeria’s diversification strategy. However, the contraction in hydrocarbons and rising imports underscore the need for stronger support to local production and export-oriented industries.
Source: L'Economiste Maghrébin
