Algeria: 2025 Article IV Consultation-Press Release; and Staff Report

International Monetary Fund

No 2025/270, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation highlights that Algeria’s 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. 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 positive steps, but realizing Algeria’s potential will require bold action to address governance, competitiveness, and fiscal sustainability challenges. 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. Unlocking Algeria’s growth potential would require broad reforms to facilitate private sector development. Deep product and labor market reforms to reduce restrictions and level the playing field between state-owned enterprises and private entities would help increase competition and innovation, and support diversification efforts.

Keywords: mining tax administration liquidity forecasting; hydrocarbon price; headline inflation; private sector; CPI basket; monetary policy transmission; Government debt management; Anti-money laundering and combating the financing of terrorism (AML/CFT); Global; Middle East (search for similar items in EconPapers)
Pages: 99
Date: 2025-09-18
New Economics Papers: this item is included in nep-ara
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=570472 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/270

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().