Algeria

Algeria: steady but modest growth, 1980–2025

Algeria's economy remains heavily dependent on oil and gas exports and state spending, with limited private-sector diversification despite periodic reform efforts following the 1990s civil conflict. Between 1980 and 2025, Algeria's GDP per capita grew from $2,276 to $6,051 (current US$), a compound annual growth rate of 2.2% — steady but modest growth. Annual GDP growth averaged 2.7% with a year-to-year standard deviation of 2.3 points, reflecting relatively stable macroeconomic conditions. Structurally, agriculture's share of the economy moved from 11.1% to 14.5% of GDP (a notable increase), while services rose from 39.0% to 45.7% of GDP, underscoring a shift toward a services-driven economy. On human development, life expectancy rose from 54.5 to 76.5 years, while tertiary school enrollment moved from 8.8% to 54.4%, while the urban population share grew from 42.8% to 75.8%.

What this growth cost: Growth was not without cost: per-capita CO2 emissions rose from 3.07 to 3.98 tonnes CO2e per person; income inequality (Gini index) narrowed from 37.4 to 27.6; the poverty headcount ratio fell from 12.3% to 0.0%.