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Algeria joins the club of upper-middle-income countries according to the reclassification of the Algerian economy by the World Bank. In an announcement that marks a turning point for the Algerian economy, the Ministry of Finance announced that the World Bank (WB) reclassified the Algerian economy in the category of countries with “Middle Income to Upper Slice”. This promotion reflects a significant improvement in its economic situation.
This qualitative leap is based on an increase in Gross National Income (GNI) per capita. According to figures released by the ministry, this key indicator rose from USD 3,900 to USD 4,960 in one fiscal year, representing a growth of 27%. The ministry said this development reflects a substantial improvement in general economic conditions. The increase places Algeria firmly in its new category, with the threshold for upper-middle-income economies set at USD 4,466 by the World Bank.
This update reflects the real economic situation in Algeria. It is an important indicator of the quality of economic and statistical information produced by the country. Dr. Abderrahmane Hadef, an economic expert emphasizes that this barometer, calculated over a fiscal year from July 1 to June 30, takes into account a multitude of economic factors. According to him, several factors contributed to this reclassification. It was mainly the readjustment in terms of the level of domestic product that was the determining factor, but also the control of inflation during the past fiscal year.
The Ministry of Finance emphasizes that this positive development is the result of several years of efforts. A rebasing of the GDP was carried out, revealing a previous undervaluation of the Algerian economy. An average upward revision of 13.3% over the period 2018-2022, adding that this revaluation has made it possible to better reflect the economic reality of the country, taking into account previously underestimated sectors.
The World Bank’s reclassification is part of a broader economic transformation project. The goal is to exceed the USD 400 billion mark in GDP by 2027, the ministry recalls. This will of course require sustained growth and continued structural reforms. Diversification of the economy is at the heart of this strategy.
The role of the national statistical system in this development is highlighted. The creation of the National Statistics Council (CNS) has allowed for a more precise reassessment of GDP. The country must continue to modernize this body so that it produces reliable statistical information, specifying that this modernization is essential to provide policy makers and investors with an accurate picture of the Algerian economy. This is a strong signal that validates the relevance. This international recognition could attract more foreign investments, crucial for the country’s economic development.
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This reclassification marks an important step in the development of the country and encourages continued efforts for economic transformation, the objective being the emergence of a diversified, resilient, and competitive Algerian economy on the international scene.
