Tunisia

Tunisia is a country in north Africa bounded by Algeria to the west and southwest, Libya to the southeast, and the Mediterranean Sea to the east and north. It has a land mass of 163,610km², a coastline of 1,148km and is 70km away from the southern Italian islands. It has a population of 12.3 million people and a GDP of US$46.7bn.\r\n\r\nInternal constraints, such as the fragmentation of the political party system and related difficulties in reaching consensus on key economic reforms, have combined with external constraints, such as conflict in neighbouring Libya, to slow down economic recovery and generate growing social dissatisfaction among Tunisians with the lack of employment. Youth and women have been particularly affected, as Tunisia is one of the few countries in the world where a higher level of education decreases employability, in particular for women. Youth and women in inland areas are affected the most, and the resulting emigration of youth poses a threat to Tunisia\'s long-term prospects of economic competitiveness.\r\n\r\nAfter a 4.4% rebound in 2021 following a sharp 8.8% contraction in 2020, Tunisia\'s economy slowed in 2022 with real GDP growing by 2.5%. Services grew 4% and contributed 2.4 percentage points to annual GDP growth, driven by tourism and transport. Hotels and restaurant services and transport continued the post-pandemic recovery. The manufacturing sector grew by 5% in 2022, contributing 0.7 percentage points, dominated by the mechanical and electrical industries. In contrast to 2021, when there was a contraction, agriculture contributed 0.2 percentage points to growth. The mining, energy, and non-manufacturing sectors (electricity, water, and construction) contributed negatively (–0.9 percentage points).\r\nReal GDP is projected to grow 1.9% in 2023 and 2.8% in 2024, driven by manufacturing and services. Inflation is projected to rise to 9.2% in 2023 before falling to 6.8% in 2024, assuming prudent monetary policy and easing external inflationary pressure. A National Reform Program was launched in 2022 to strengthen private investment, consolidate public finances, and improve the performance of public enterprises.\r\n

Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF.