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The resident representative of the World Bank (WB) in Algeria, Kamel Braham, affirmed, this Sunday, that the indicators of the growth of the Algerian economy are positive based on the latest report of this global institution and on the new classification of the country as an “upper middle-income country”.
The WB representative highlighted at the forum El Moudjahidthat the reforms undertaken have borne fruit. He continued that relations between the Bank and Algeria are at an “exceptional” level, adding that the institution offers technical assistance to the various organizations to support the country’s vision that focuses on multiple segments of the economy, including the promotion of investments, in addition to increasing non-hydrocarbon exports.
In this regard, the World Bank predicts, in its latest report, that growth in Algeria “would start to rise again in 2025 and 2026 with the resumption of oil production quotas and agricultural production”, adding that “investment and industrial production would continue to slow down somewhat in 2025 and 2026, as the consolidation of public investment continues, even if private investment remains dynamic”.
In addition, Kamel Braham emphasized the improvement of data systems in the country to support investment and policy development, adding that alternative data sources used in the WB report, such as satellite data on crop development or night lighting, represent a useful complement to economic and social statistics. According to him, these data will effectively contribute to promoting Algeria to attract investors and highlight the resources and potential that the country has.
In the same vein, the WB also believes that “accelerating private sector investment outside hydrocarbons remains a priority given that public investment is unlikely to become the engine of economic growth again.” Furthermore, according to the speaker, the risks associated with global hydrocarbon prices underline the importance of supporting economic diversification, by accelerating private sector investment in “sectors other than hydrocarbons and, at the same time, by strengthening the macroeconomic policy framework, increasing sources of exports and non-hydrocarbon budget revenues,” said Mr. Braham.
The WB specified in its latest report on Algeria that “the 2019 hydrocarbons law, the 2022 investment law, the 2023 monetary and banking law, formal membership in the African Continental Free Trade Area (AfCFTA), the 2023 economic land law and the launch of public bank reforms all aim to stimulate investment and improve diversification.”
“Strengthening these efforts, particularly by ensuring that these measures effectively contribute to stimulating the business climate, is all the more important as public investment – previously the engine of Algeria’s growth – which is increasingly limited by rigid current expenditure is expanding rapidly,” the WB stressed in its report.