Algeria: 2025 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, September 18, 2025
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Bibliographic details
- Published: September 18, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229026000.002
Near-term outlook
- Economic prospects for the near term are "broadly positive but clouded by growing fiscal vulnerabilities."
- The 2024 fiscal impulse supported growth into 2025 but, alongside falling hydrocarbon prices, led to a wider fiscal deficit and depleted fiscal buffers.
- Algeria’s near-term outlook remains broadly positive but clouded by the need for significant policy adjustment amid declining hydrocarbon prices and widening fiscal deficits.
Fiscal developments and vulnerabilities
- The 2024 fiscal impulse contributed to near-term growth but increased the fiscal deficit.
- Falling hydrocarbon prices have reduced fiscal revenues and depleted fiscal buffers, increasing fiscal vulnerabilities.
- Widening fiscal deficits imply a need for fiscal sustainability measures and adjustments.
Structural challenges and reform priorities
- Long-term resilience and inclusive growth will require deep structural reforms to shift toward a more open, private-sector-driven economy.
- Recent efforts to diversify and attract investment are identified as positive steps but insufficient without bolder reforms.
- Key structural priorities highlighted:
- Deep product and labor market reforms to reduce restrictions.
- Leveling the playing field between state-owned enterprises and private entities to increase competition and innovation.
- Measures to support diversification away from hydrocarbon dependence.
- Addressing governance and competitiveness challenges to realize Algeria’s potential.
Policy recommendations and implications
- Significant policy adjustment is needed in the face of declining hydrocarbon prices and widening deficits.
- Policies to facilitate private sector development are central to unlocking growth potential.
- Strengthening governance, fiscal sustainability, and competitiveness are underscored as essential for inclusive growth and long-term resilience.
Subject areas and keywords emphasized
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Government debt management, Public debt, Public financial management (PFM), Revenue administration.
- Keywords include: Anti-money laundering and combating the financing of terrorism (AML/CFT), CPI basket, Global, Government debt management, headline inflation, hydrocarbon price, Middle East, mining tax administration liquidity forecasting, monetary policy transmission, private sector.
Publication metadata
- Publication date: September 18, 2025
- Pages: 99
- Volume: 2025
- Issue: 270
- Series: Country Report No. 2025/270
- DOI: https://doi.org/10.5089/9798229026000.002
- Stock No: 1DZAEA2025001
- ISBN: 9798229026000
- ISSN: 1934-7685
International Monetary Fund. Middle East and Central Asia Dept. "Algeria: 2025 Article IV Consultation-Press Release; and Staff Report", IMF Staff Country Reports 2025, 270 (2025).
Content in this bundle
- 1. Tapping Algeria’s Nonhydrocarbon Tax Potential