Algeria’s economy is heavily reliant on hydrocarbons, contributing over 90% of exports and half of government revenues. Market competition is limited outside of energy, with underdeveloped sectors such as manufacturing and technology. The government is pursuing diversification reforms, including renewable energy and agriculture, but progress is slow due to bureaucracy and investment barriers. While regulatory frameworks are improving, inefficiencies and corruption persist. Algeria’s society is youthful but faces high unemployment, particularly among the educated. Education reforms aim to address skills mismatches, yet quality and access disparities remain. Healthcare infrastructure is improving but struggles with urban-rural gaps. Climate risks, including desertification and water scarcity, pose significant challenges, pushing for sustainable practices. These factors present a mixed economic outlook, with potential for growth if structural reforms succeed.