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Growth of 4.5% in the first quarter of 2025
Economic activity
The Director General of Forecasting and Policies at the Ministry of Finance, Sid Ahmed Louahadj, affirmed, the day before yesterday Thursday in Algiers, that economic activity continued to improve in the first quarter of 2025, recording growth of 4.5%, driven by the performance of non-hydrocarbon sectors, whose growth rate reached 5.7%.
“The inflation rate fell to 3.25% at the end of June 2025, after having reached 4.06% in the same period of 2024, thanks to the drop in the prices of food products and a slight reduction in the prices of services,” indicated Sid Ahmed Louahadj.
Speaking before the Finance and Budget Commission of the National People’s Assembly (APN), chaired by Mohamed Benhachem, president of the commission, as part of the examination of the PLF 2026, in the presence of the interim Director General of Taxes, Sid Ahmed Louahadj, reported the adoption, by the ministry within the framework of the Finance Bill (PLF) 2026, of a new forecasting model macroeconomic indicators, developed in partnership with the World Bank, with a view to optimizing the reliability of forecasts and monitoring economic and financial changes.
Outlining the main directions of the macroeconomic framework and budgetary forecasts for the period 2026-2028, according to a press release from the APN, Sid Ahmed Louahadj announced, in this context, that the General Directorate of Forecasting and Policies has adopted this new model to strengthen the reliability of forecasts and monitor economic and financial changes. Noting that according to forecasts from the International Monetary Fund (IMF) (updated July 2025), the global economy is expected to grow by 3.5% in 2026, compared to 2.6% in 2025 and 1.9% in 2024, in a context of slowing inflation due to lower demand, lower energy prices and the relative stability of oil prices.
Returning to the macroeconomic and budgetary framework for 2026-2028, the general director of forecasting and policies at the Ministry of Finance specified that a reference price for a barrel of oil of 70 dollars was retained with a market price of 60 dollars, while forecasting a drop in the volume of hydrocarbon exports over the same period, offset by the improvement in the performance of the sectors of agriculture, construction, industry and services, thus ensuring balanced growth and supporting financial stability.
During the debates, members of the APN Finance and Budget Committee raised several concerns, notably on concrete means of diversifying non-hydrocarbon exports, of translating the expected economic growth into jobs and sustainable wealth, as well as on practical mechanisms for controlling inflation and preserving the purchasing power of citizens. Rabah M.