Algerian industrial Output Shows Mixed Signals: Hydrocarbons Rebound, Agri-Food Sector Contracts
Algiers – Algeria‘s industrial production displayed a bifurcated trend in the second quarter of 2025, with the chemical industries-including hydrocarbons-showing signs of recovery while the crucial agri-food sector experienced a continued downturn, according to recent data from the office National des statistiques (ONS). The contrasting performance underscores the nation’s ongoing economic diversification challenges and potential vulnerabilities in food security.
The rebound in chemical industries, registering a 2.5% growth after an 11.1% decline in the first quarter of 2025, offers a glimmer of hope for Algeria’s key export sector.However, this positive development is sharply contrasted by a third consecutive quarterly decline in agricultural production, falling 4.7% in the second quarter compared to a 6.6% increase during the same period in 2024. This downturn impacts Algerian consumers, food processing businesses, and the country’s import bills.
A meaningful driver of the agricultural decline is a sharp contraction in “grain processing,” which saw a decrease of 11.1%.Conversely, the “milk industry” and “Production of animal food products” demonstrated a return to growth, increasing by 2.1% and 3.9% respectively, reversing declines of 5.5% and 13.8% from the previous quarter.
Meanwhile, industrial production within Algeria’s public sector rose by 6.3% during the second quarter of 2025,exceeding the 3.8% increase observed in the same period of the previous year. This suggests a strengthening of state-owned enterprises, though the overall economic impact remains to be seen given the agri-food sector’s struggles.
Recent interest from france in Algerian potatoes, as reported by TSA Algerie, highlights potential export opportunities, but broader agricultural challenges persist.Importers of vehicles also face difficulties, as detailed in a separate TSA algerie report. The ONS data signals a complex economic landscape for Algeria, requiring strategic interventions to bolster the agri-food sector and sustain the nascent recovery in key industrial areas.
