While many other African nations face a high debt burden, Algeria's already low debt keeps falling to a projected 0.09% in 2025

  • Algeria’s debt service per GDP dropped from 0.77% in 2009 to a projected 0.09% in 2025.
  • The country’s debt service per GDP declined at a -11.9% CAGR from 2009–2025.
  • A high of 0.73% occurred in 2012 before the consistent decline resumed.
  • By 2015, the country's debt service fell to 0.27%, showing progress in reduction.
  • The lowest point is forecast for 2025, at 0.09% of GDP.
  • Algeria’s debt burden is among the lowest in Africa, contrasting with the rising trend in many other nations.
  • This low debt service level allows for greater fiscal flexibility in public spending and investment.

Algeria has maintained one of the lowest debt service-to-GDP ratios in Africa over the past decade and a half, and this trend is projected to continue. From 0.77% in 2009, the figure declined to just 0.10% in 2024 and is forecast to reach 0.09% by 2025. This represents a compound annual decline rate of -11.9% between 2009 and 2025 — a stark contrast to many other African economies that are struggling with rising debt burdens.

The decline has been consistent, with only brief fluctuations, such as a slight rise to 0.73% in 2012 before continuing its downward trajectory. Algeria’s ability to keep debt service low means it can direct more of its resources toward domestic investment, infrastructure, and social programmes rather than repayments. This sustained reduction is particularly notable, given the continent-wide challenge of escalating debt servicing costs.

Source:

World Bank - IDS

Period:

2009-2025
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