✍️ BY: Dr. Hana Saada
Algiers – November 2025 – Algeria’s economy continued its upward trajectory in the second quarter of 2025, posting a growth rate of 3.9%, a slight acceleration compared to the 3.7% recorded during the same period of the previous year. This performance reflects the resilience and dynamism of several key sectors, even as the hydrocarbons industry experienced a modest contraction.
According to quarterly estimates released Thursday by the National Office of Statistics (ONS), non-hydrocarbon GDP grew by an impressive 5.3%, driven by sustained expansion across multiple strategic branches of the economy. Industry registered an increase of 6.4%, commerce surged by 6.7%, agriculture advanced by 4.5%, while electricity and gas posted a robust 9.7% growth—illustrating the diversification efforts undertaken in recent years.
In contrast, the hydrocarbons sector recorded a year-on-year decline of 1.2%, attributed primarily to a slight drop in production levels. Despite this contraction, internal demand surged by 10.2%, significantly outpacing the 6.8% recorded in the second quarter of 2024. This sharp rise was largely fuelled by investment, which leapt by 12.4% according to ONS data—marking a renewed confidence in the national economic landscape.
Household final consumption registered only a minor slowdown, settling at 3.9% compared to 4.1% a year earlier, while public administration consumption increased to 3.1%, up from 2.3% in the same quarter of 2024. These figures point to steady domestic activity supported by both the private and public sectors.
In current prices, Algeria’s GDP reached 9,410 billion dinars during the period under review, compared with 8,954.1 billion dinars a year earlier—an increase of 5.1%. This nominal rise reflects a pronounced easing of inflation, which decelerated sharply to 1.1%, down from 4.1% during the same period last year, according to ONS indicators.
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