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.
The damage to Tunisia’s economy from the Covid-19 pandemic continues to worsen. A revised budget for 2020 has seen the extent of the fiscal deficit widen to 10.5% of GDP from 3.1% of GDP in 2019, and up from our September forecast for a shortfall of 8.1% in 2020. The expansion of the deficit has been primarily attributed to a collapse in tax revenues. With rating agencies placing Tunisian sovereign debt on a negative outlook, 2021 will demand a balancing act by the government. (Source: Tunisia Quarterly Update, published December 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) |
-8.5 |
|
Real GDP (annual % change) |
1.0 |
|
GDP per Capita, US$ |
3,318.8 |
|
Import Cover (months) |
3.9 |
|
Population, million |
11.7 |
| Total External Debt (as a % of GDP) |
97.3 |