IMF warns of widening deficits in Algeria despite strong economic growth

The International Monetary Fund highlighted that the Algerian economy has maintained its resilience amid rising fuel prices, despite the ongoing high level of fiscal deficit and the increase in public debt to 52.1% of GDP. The IMF forecasted a growth rate of 3.8% in 2026, with a decrease in the current account deficit due to rising hydrocarbon exports and declining imports. However, it warned of persistent large deficits and their negative impact on international reserves. The IMF recommended structural reforms to strengthen fiscal sustainability and diversify the economy, as well as improvements in liquidity management and monetary policy.

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