Current Account Balance: Algeria

Analysis# Algeria Current Account Balance Algeria's current account balance stands at -3.8% of GDP in 2026, marking a modest deficit after years of volatility. The country's economic position has deteriorated dramatically since 1980, with a cumulative decline of 860%. This contrasts sharply with the all-time peak of 23.5% in 2006, when surging oil revenues generated substantial surpluses, and the severe trough of -14.6% in 2015, when energy prices collapsed and foreign reserves depleted rapidly. A pivotal recovery emerged in 2022, when Algeria achieved an 8.4% surplus—the strongest performance in over a decade—driven by elevated oil and gas prices. However, this momentum reversed as energy markets stabilized. Current projections suggest continued modest deficits around -3.8%, indicating Algeria's ongoing struggle to maintain external balance without commodity windfalls. Structural economic diversification remains essential to stabilize the current account beyond energy cycles.