Algeria is classified as a lower-middle-income country, with a real gross domestic product (GDP) in purchasing power parity (PPP) of $488 billion and a GDP per capita (in dollars current) estimated at $3,691 in 2021. Rising oil and gas demand and prices have led to a strong recovery in hydrocarbon production and exports in 2021, which has sharply reduced budgetary and external financing needs. This led to GDP growth of 3.4% in 2021, after falling 5.5% during the Covid-19 pandemic in 2020. Real GDP growth moderated in 2022, reaching around 3%, and is expected to slow to 2.3% in 2023, due to limited oil production and the impact of the gradual recovery of the services and agriculture sectors.

This Trade Report focuses on Algeria’s international trading relationships and more specifically the African Continental Free Trade Area (AfCFTA) which was ratified by Algeria in June 2021. Algeria’s trade, industrial and investment policies are reviewed, including the various bilateral and plurilateral agreements that Algeria is party to. This is then followed by a look at Algeria’s trade performance, outlining its global trade and regional trade profiles. Value chain analysis follows with a focus on Algeria’s participation in regional value chains emanating from potential opportunities arising from the full implementation of the AfCFTA. Issues that Algeria needs to address to capitalise on the AfCFTA are highlighted.

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