Algeria grows 4.5% in Q1 as non-oil sectors gain ground

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Algiers, August 2025

Algeria’s economy grew by 4.5% in the first quarter of 2025, with official data pointing to strong momentum in non-hydrocarbon sectors. Agriculture grew by 6.1%, non-oil industry by 5.5%, and the trade and transport sectors posted increases of 8.9% and 8.3%, respectively.

AfricaHeadline Reports Team
editorial@dw-demosnewstaion.online 

In contrast, the hydrocarbon sector contracted by 2.8%, reflecting a slowdown in global demand and operational constraints. Despite this, the government has kept inflation contained at around 3.3% and is forecasting a gradual recovery in oil production later this year.

The World Bank estimates Algeria’s overall GDP growth at 3.3% for 2025, with hydrocarbons expected to rebound by 1.6% and non-oil sectors by 3.6%.

One of the government’s flagship projects is the Bled El Hadba phosphate mine in eastern Algeria. The $7 billion development is expected to begin production by 2027 and is seen as central to the country’s economic diversification strategy. The project is projected to create more than 12,000 direct jobs and stimulate downstream industries, including agriculture and manufacturing.

Algeria is showing encouraging signs of broad-based growth, but its economy remains exposed to the volatility of global energy markets. Effective diversification beyond oil and gas will be key to achieving long-term economic sustainability.