IMF head praises economic progress during visit to Algeria

The Managing Director of the IMF (International Money Fund) Kristalina Georgieva attended a conference organized by the Bank of Algeria in Algiers, reports APA News on February 5th.

While discussing the development of the Algerian economy, she praised the country’s economic diversification and its attempts to reduce its dependence of hydrocarbon exports. Non-hydrocarbon exports have tripled since 2017 and include a variety of products such as cement, steel and fertilizers. The agricultural sector is also growing steadily, with Algeria being a major supplier of dates, olive oil and other fresh produce exported to European countries.

The endorsement comes after the IMF’s warning of a deepening crisis in July 2025, when it highlighted Algeria’s budget deficit and the need for urgent structural change.

The Tebboune government has introduced several reforms to support economic development and address concerns, and the deficit is reportedly now narrowing.

The 2022 Investment Law in particular facilitates foreign investments, with a number of tax incentives and exemptions, and a new online platform, the Algerian Agency of Investment Promotion (AAPI) was created to streamline administrative procedures. As a result, investments are gradually increasing, with Qatar investing in the agrifood sector and China developing a new industrial hub in the North African state.

Reforms have significantly changed the Algerian economic landscape, modernizing procedures and sustaining the current growth of 3.8% increase in GDP for 2025.

However, despite significant developments, hydrocarbons remain the backbone of the country’s economy, representing over 90% of exports, making it very vulnerable to market fluctuations and possibly global shifts. The recent fall of Venezuela’s Nicolás Maduro for instance, who is a key ally and a fellow member of OPEC, forced Algeria to step back to protect its relations with the US administration.

APA News, AL24 News, Maghrebi.org