In-Depth Analysis
Tunisia
GDP growth has picked up gradually in line with a rebound in tourism revenues and the implementation of reforms that form part of an IMF support programme, but labour protests continue to present risks to the outlook as high unemployment, rising inflation, and poor working conditions fuel social tensions and slow the pace of further reforms.
Economic growth declined from 2.5% in 2018 to 1.0% in 2019, as slow global growth, softer commodity prices, and weak demand from Europe suppressed local industries and manufacturing. Inflation continues to decline, and the exchange rate remains overvalued due to high forex reserve inflows. While trade tensions have eased, Covid-19 has emerged as the new threat for the economy in 2020, disrupting international supply chains, weakening global demand and stifling domestic industries. Declining inflation allowed the authorities to respond by slashing the policy rate by 100 bps to 6.75%, and the government is expected to implement countercyclical fiscal policy to boost economic growth prospects. (Source: Tunisia Quarterly Update, published March 2020)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-3.1 |
|
Consumer Price Index (% change y-o-y, avg) |
6.7 |
|
Current Account Balance (as a % of GDP) |
-9.1 |
|
Real GDP (annual % change) |
1.0 |
|
GDP per Capita, US$ |
3,299.9 |
|
Import Cover (months) |
3.5 |
|
Population, million |
11.7 |
| Total External Debt (as a % of GDP) |
93.5 |