Algeria’s economy swelled by around 4.5% in the first quarter of 2025, driven by strong performances in farming, industry and other non-oil sectors.
GDP growth in the first quarter of this year was slightly above the 4.2% increase recorded in the first quarter of 2024 and the acceleration took place despite negative growth in the hydrocarbon sector.
Figures by the National Office for Statistics released recently showed the oil and gas sector shrank by around 2.8 percent in the first quarter of this year.
In contrast, the non-oil sector surged by nearly 5.7%, fuelled by 6.1% growth in the farming and fishing sector, and 5.5% in non-oil industry.
In current prices, Algeria’s GDP totalled around $77 billion in the first quarter of 2025, maintaining its position as one of the top five Arab economies.
The report showed Algeria’s exports declined by around 3.8% as a result of a fall by 13.4% in non-oil exports and 2.9% in oil and gas exports.
Imports soared by about 24% following a 10.4% increase in domestic demand, including around 4.7% rise in household consumption. Fixed capital formation (investments) grew by 18% to around $29 billion, the report showed.
Algeria, a major gas exporter, unveiled plans in April to create its first entity dedicated to increasing non-oil exports within IMF-recommended reforms aimed at diversifying its economy away from volatile crude sales.
President Abdelmadjid Tebboune said the “export promotion agency” would focus on expanding non-oil exports, including minerals, cement and other products.
He said Algeria’s efforts to diversify its economy have already started to pay off, with non-hydrocarbon exports climbing to a record high of around $7 billion in 2024.
In a report earlier this year, Algeria’s Economic Renewal Council said the government has set a target to boost non-oil exports to nearly $30 billion in 2030.
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