Economical overview
Although Tunisia has good conditions for tourism,
an important export industry and large agricultural
exports of olive oil, among other things, the economy
has not picked up momentum since the 2011 revolution.
Political and social turmoil and terrorist attacks have
disturbed tourism and foreign investment, while poor
agricultural harvesting and difficulties in the energy
and mining industries have had a negative impact. In
addition, Tunisia has been affected by external factors
in the outside world - not least the corona crisis.
At the same time, structural problems in the economy
also present considerable obstacles to development.
Large differences in development between the different
parts of the country are one such problem. In the
coastal areas in the Northeast, residents have higher
incomes, here there are over 90 percent of industrial
companies and there are more jobs than in the poorer
inner parts of the country where unemployment is close
to three times higher.
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Countryaah.com:
Major imports by Tunisia, covering a full list of top products imported by the country and trade value for each product category.
Economic growth in the 2010s has not been enough to
create enough new jobs, and the jobs that have been
added have mainly been less qualified jobs in industry
and service, while the country's many highly educated
academics have gone unemployed. The percentage of
unemployed people is higher among academics than in the
average population.
Other obstacles to development are corruption and
nepotism, complicated regulations and other bureaucracy
that lives on from the dictator Ben Ali's time, when the
economic system was primarily intended to benefit the
president and his immediate family. This has also helped
to discourage foreign investors.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including TUN which represents the country of Tunisia. Check findjobdescriptions to learn more about Tunisia.
Today, the economy is not as dependent on agriculture
and commodity exports (oil and phosphate) as before, and
the sensitivity to drought or lower prices for export
products has decreased. The manufacturing industry and
the service sector (especially tourism) have grown
economically, but tourism is susceptible to disruptions.
This was evident in the wake of terrorist acts in 2015.
A major bankruptcy in international travel in 2019 also
raised fears, especially as many hotel owners depend on
individual large customers. The stoppage of travel
during the corona crisis causes severe feuds in a
country where tourism accounted for 14 percent of GDP,
and four-fifths of income is generated by tourists from
abroad.
In 2018, the African Development Bank estimated
growth in the economy at 2.6 percent, and gross domestic
product (GDP) was expected to increase in the next few
years as well. The state budget showed deficits a few
years into the 2010s, but it was no greater than that it
was manageable according to economic analysts.
Inflation was set to rise by almost 7.5 percent in
2018. Tunisia's currency dropped sharply in value
against the US dollar and the euro. A heavy expenditure
item in the state budget is that the state still
subsidizes staple goods and energy, but in recent years
the governments have started reducing these subsidies.
There are also problems in the banking sector, for
example, banks have a high proportion of "bad" high-risk
loans, while ordinary small businesses often find it
difficult to borrow money for their operations.
After the revolution in 2011, when Tunisia's need for
external financial assistance increased sharply, the
World Bank and the African Development Bank assisted the
country with direct assistance. In addition, the eight
richest countries in the world within the G8 promised $
25 billion in loans for the coming five-year period. In
addition, Tunisia received $ 1.7 billion in loans for
the period 2013–2015 by the International Monetary Fund
(IMF). In May 2016, the IMF granted a new $ 2.9 billion
four-year loan to support the government's five-year
plan to stabilize the economy and improve the business
climate. In 2017, the IMF approved a payout after first
shooting at it. Lenders believe Tunisia needs to
strengthen the Treasury by trying to increase its tax
revenue and continue to reduce government subsidies. By
2020, the IMF has agreed to emergency loans in the
pandemic's tracks.
Electronic goods and electromechanics account for the
largest share of export value, followed by textiles and
clothing. Olive oil and phosphoric acid and fertilizers
are also important export products. The EU is Tunisia's
largest trading partner, especially France and Italy.
Approximately three-quarters of Tunisia's exports to EU
countries go to more than half of the imports.
Tunisia, through an agreement with the EU and the
World Trade Organization (WTO), has undertaken to
gradually reduce its high tariffs. In 1995, the EU
signed an association agreement with Tunisia. Trade in
industrial goods has been liberalized since 2008. In the
autumn of 2015, the EU began negotiations on a free
trade agreement with Tunisia, which, in addition to
trade in goods, will also include agricultural products,
services and investments. In Tunisia, there are fears
that it will lead to, among other things, agriculture
and fisheries being knocked out by an influx of European
agricultural and industrial products.
Tunisia also participated when 44 African states
signed a new free trade agreement, AFCFTA, in March
2018. The agreement must be ratified at national level
before it can come into force but is seen by many as an
important step towards increased trade exchange within
Africa.
The country's largest port is Tunis-La Goulette. A
deep water port is planned in the city of Enfidha (al-Nafida),
which also has its own international airport, the
country's ninth.
FACTS - FINANCE
GDP per person
US $ 3,447 (2018)
Total GDP
US $ 39,861 million (2018)
GDP growth
2.5 percent (2018)
Agriculture's share of GDP
9.5 percent (2017)
Manufacturing industry's share of GDP
14.5 percent (2017)
The service sector's share of GDP
60.3 percent (2017)
Inflation
6.6 percent (2019)
Government debt's share of GDP
77.0 percent (2018)
External debt
US $ 32,152 million (2017)
Currency
Tunisian dinar
Merchandise exports
US $ 15,563 M (2018)
Imports
US $ 21,434 million (2018)
Current account
- US $ 4 429 million (2018)
Commodity trade's share of GDP
96 percent (2018)
Main export goods
textile and clothing products, food (mainly olive
oil), oil, oil products, phosphoric acid, chemical
products, phosphate
Largest trading partner
France, Germany, Libya, Spain (2010)
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