In-Depth Analysis
Tunisia
As a fairly developed country, Tunisia is exposed to the economic shocks relating to Covid-19, which has resulted in the worst recession since the country’s independence in 1956. Low inflation, countercyclical fiscal policies, robust international support and a stable exchange rate still provide support, while good institutions, deep ties with Europe, and a diversified economy are expected to underpin recovery.
During the second quarter of this year, the government implemented strict lockdown measures: closing the country’s borders, limiting trade, and restricting the movement of people. While this stemmed the tide of the virus, it severely curbed economic activity, with growth forecast to decline from 1.0% in 2019 to -10.2% in 2020. That said, countercyclical fiscal policies, low inflation, robust international support and a stable exchange rate continue to bolster the economy this year. However, with Covid-19 cases resurging, trade disrupted and the tourism sector heading for its worst year on record, economic risks are elevated. (Source: Tunisia Quarterly Update, published September 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) |
-8.9 |
|
Real GDP (annual % change) |
1.0 |
|
GDP per Capita, US$ |
3,299.9 |
|
Import Cover (months) |
3.8 |
|
Population, million |
11.7 |
| Total External Debt (as a % of GDP) |
101.7 |