Industrial Machinery Revs Up as Contribution to GDP Set to Reach 10%

BY: Dr. Hana Saada

ALGIERS- The national industrial machine in Algeria is slowly but steadily gaining momentum, having been stagnant for years, thanks in part to measures implemented by the government to promote investment across various sectors. President Abdelmadjid Tebboune recently revealed that the contribution of the national industry to the country’s Gross Domestic Product (GDP) has now surpassed 5%, a significant improvement from its previous level of around 3%. “We are gradually reclaiming the enormous potential of the country,” emphasized the Head of State, noting that the industrial sector’s contribution to the GDP is steadily increasing and is now approaching a level of 10%.

While stressing the importance of integrating agriculture into industrial transformation, President Tebboune also highlighted the robust resurgence of investment in Algeria. Over 6000 new projects have been registered with the Algerian Investment Promotion Agency (AAPI), most of which are expected to commence by 2026. This influx of investments, both domestic and foreign, with half of them directed towards industrial projects according to AAPI data, bodes well for a pronounced revival of the national industry in the near future.

The International Monetary Fund (IMF) has acknowledged the “solid performance” of Algeria’s industrial sector, along with growth in services, construction, and hydrocarbon production, as key drivers of the 4.2% economic growth achieved in 2023. Projected growth rates for the industrial sector stand at 7.5% for 2024, 9% for 2025, and 9.3% for 2026, according to official forecasts integrated into the 2024 budget framework.

This industrial renaissance is bolstered by flagship industries such as pharmaceuticals, steel, and agro-food, as well as emerging sectors like automotive and subcontracting. Public sector initiatives aimed at reorganizing state-owned enterprises, revitalizing dormant entities, and enhancing governance are expected to further support industrial resurgence.

As Algeria charts its path towards industrial revitalization, the trajectory appears promising, signaling a potential economic transformation driven by increased industrial output and investment.

Translated from:

https://lalgerieaujourdhui.dz/son-apport-au-pib-devra-saccroitre-a-10-la-machine-industrielle-redemarre/

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