ATI
COUNTRY PROFILE
Algeria
Algeria is a moderate economic transformer with an overall ATI score of 28.3, reflecting the country’s struggles in three dimensions of economic transformation: diversification, export competitiveness, and technology upgrading. While the overall ATI score has improved by 2.4 points over the past two decades, the current score of 28.3 is still below the African average of 30.3.
Algiers
45.6 million
1.6 %
4.1 %
US $5,260
Algeria’s Performance on the African Transformation Index
The overall African Transformation Index score measures the five dimensions of DEPTH.
Overall score
28.3 /100
Score change
since 2000
At a glance
- Algeria is a moderate economic transformer with an overall ATI score of 28.3.
- While the overall ATI score has improved by 2.4 points over the past two decades, the current score of 28.3 is still below the African average of 30.3.
| Score /100 |
Change since 2000 | ||
 |
Diversification |
8.2 |
-2.8
|
 |
Export competitiveness |
0.2 |
-0.4
|
 |
Productivity increases |
52.3 |
+11.3
|
 |
Technology upgrading |
2.9 |
-9.8
|
 |
Human well-being |
77.8 |
+13.6
|
Diversification of production and exports measures countries’ capability to produce and export a widening array of goods and services.
Score
8.2 /100
Score change
since 2000
At a glance
- Algeria’s economy exhibits a lack of diversification. It depends heavily on hydrocarbons, which account for a significant portion of GDP and government revenues.
- The manufacturing sector is relatively small, contributing only about 7.8 percent to GDP, while the services sector is the largest, contributing around 45.1 percent in 2023.
- The country’s export structure is highly concentrated, with oil and gas comprising over 90 percent of total exports, consequently leaving the economy vulnerable to fluctuations in global energy prices.
- Efforts to diversify the export base have been limited, with non-hydrocarbon exports remaining marginal. This narrow focus constrains Algeria's economic resilience and limits opportunities for sustained growth and development.
Export competitiveness is measured as the ratio of a country’s share in the world’s exports of non-extractive goods and services to its share in world non-extractive GDP.
Score
0.2 /100
Score change
since 2000
At a glance
- Algeria’s export competitiveness has faced challenges due to its reliance on hydrocarbon exports, with oil and gas accounting for most of its export revenues. This overreliance on hydrocarbons has left the economy vulnerable to global price fluctuations.
- Diversification into non-hydrocarbon sectors has been limited, with little to no progress in developing industries such as manufacturing and agro-processing.
-
Infrastructural bottlenecks, complex regulatory frameworks, and a challenging business environment are just a few of the factors that constrain export diversification efforts.
Productivity increases measure the value added per unit of labor in agriculture, manufacturing, and services.
Score
52.3 /100
Score change
since 2000
At a glance
- Algeria’s productivity growth has been steady over the past decade.
- Outside of oil and gas, productivity has been increasing in the agriculture, manufacturing, and service sectors.
- However, productivity increases have been hindered by over-dependence on the hydrocarbon sector, where efficiency gains have been limited in recent years.
Technology upgrading measures the medium-and high-technology content in total production activities and total commodity exports.
Score
2.9 /100
Score change
since 2000
At a glance
- Algeria faces significant challenges in upgrading technology and has made slow progress adopting advanced technologies across most sectors.
- The country's focus on hydrocarbons has limited incentives to diversify into technology-intensive industries, resulting in minimal medium and high-tech production. This has affected Algeria's capacity to modernize its manufacturing base and integrate into global value chains.
- The lack of investment in research and development (R&D) and a regulatory environment that can be challenging for innovation have further constrained technological advancement.
Human well-being measures economic and social outcomes and enablers in terms of incomes, income inequality, formal employment, and female participation in formal labor markets.
Score
77.8 /100
Score change
since 2000
At a glance
- Algeria's performance on this dimension has been impressive relative to other countries in the region.
- The country’s superior performance is largely a result of its progress in improving access to essential services. Algeria has over the years channeled revenues from its hydrocarbon sector toward social programs and infrastructure development.
- However, high youth unemployment, particularly among university graduates, and a substantial informal sector continue to put a strain on the labor market.
- Gender disparities still persist, with fewer women participating in formal employment compared to men.
Discover more from the ATI
ATI Scorecard
Explore the data behind the economic transformation progress of 30 African countries between 2000-2020.
Growth with DEPTH
Explore the ATI in DEPTH and see how African countries performed on each dimension between 2000-2020.
Methodology
Learn more about our methodology, sources, and how we calculate the index.
Country Profiles
To explore the results of the index in greater detail and provide context and analysis, the ATI report includes 11 case studies.
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