President of Algeria: The Economy Is Strong, No Austerity Measures

Algiers, July 18, 2025 — President Abdelmadjid Tebboune stated that Algeria’s economy remains solid despite lower global oil prices. He ruled out austerity measures and confirmed robust economic indicators.

“There is no austerity policy in Algeria. We will work to eliminate the parallel economy without harsh methods,” he said.

Economic Growth & Diversification

Foreign exchange reserves stand at about $70 billion. The country continues pursuing diversification to reduce long-term reliance on hydrocarbons.

“We will not depend on oil in the long term. The strategy is to build an economy free from hydrocarbons.”

Agriculture: A Key Driver

Agricultural output is estimated at $38 billion in 2025, nearly matching hydrocarbon revenues. Inflation has fallen from 9.7% in 2019 to around 4% today. Over 13,000 new agricultural projects are planned, boosting employment and economic activity.

Water Security & Infrastructure

Six new desalination plants are planned to ensure water supply amid climate challenges and regional scarcity.

Digitalization & Artificial Intelligence

President Tebboune emphasized that Algeria is advancing confidently in digital transformation and artificial intelligence. The government has created a National Agency for AI and a High Commission for Digitalization to modernize public services and governance.

The goal is to make Algeria a regional leader in emerging technologies and digital services, with strong participation from youth and startups.

Startup Ecosystem: Toward 20,000

Algeria has grown from 200 startups in 2019 to over 9,000 in 2025. President Tebboune announced a target of reaching 20,000 startups by the end of his mandate. This push is aimed at fostering innovation, supporting young entrepreneurs, and building a diversified, knowledge-based economy.

Outlook 2025

GDP growth is projected at a minimum of 4% in 2025. Growth will be driven by agriculture, infrastructure, investment, and digital innovation. The government remains committed to reducing the shadow economy and improving transparency and business climate.
Source: Mena Monitor