The Algerian economy posted its first acceleration in the annual growth rate for a year in the first quarter of 2018. GDP expanded by 1.3% in the three months to March 2018 over the same quarter of the previous year. This was up from 0.7% in the previous two quarters but well down on 3.4% a year earlier. As recently as 2016 the economy was growing by more than 4% a year. The growth rebound was achieved despite a 2% fall in hydrocarbon activity. Non-hydrocarbon growth was 2% compared to the first quarter of 2017. Within that, there was growth of 6.6% in transportation & communica- tions, 5.3% in real estate, 5% in financial services, and 3.8% in business services. Within industry, of the 10 industrial sub-sectors, five experienced positive growth. The growth in the non-hydrocarbon sector will be seen as a reward for the authorities’ measures to diversify the economy away from oil and gas.The uptick may be a response to the government’s decision to print money to fund the defi- cit rather than impose fresh spending cuts.