Economy of Tunisia

Tunisia has a diverse economy, with important agricultural, mining, tourism, and manufacturing sectors. Real growth, which averaged almost 5% over the past decade, declined to 4.6% in 2008 and to 3-4% in 2009-10 because of economic contraction and slowing of import demand in Europe - Tunisia's largest export market.

Tunisia faced economic difficulties and a series of external shocks following the January 2011 revolution. Due to a challenging international economic environment, as well as regional and domestic tensions, real GDP contracted by 2 percent in 2011, foreign direct investment (FDI) and tourism declined by more than 30 percent year-on-year, and unemployment rose to record levels.

However, after the sharp economic decline, real GDP growth picked up to about 3 percent in 2012. The deteriorating current account deficit—caused partly by falling demand from Europe—has been financed by sustained donor financing, strengthened FDI and market access, which helped increase reserves (but to a level still below 2010).

Helped by base effects early in the year, tourism and FDI have rebounded (a 34 per cent and 28 per cent y-o-y increase), pushing 2012 overall real GDP growth to 3.6 per cent. The overall unemployment rate improved, narrowing from 18.9 per cent at end-2011 to 16.7 per cent at end-2012, but youth and female unemployment remained high at 33 and 24 per cent, despite new public-sector jobs and the government’s insertion programs for the unemployed.

A fragile banking sector, widespread social and economic disparities, and high youth unemployment are key challenges.

A higher wage bill and rising subsidies, in response to increasing social demands, drove government spending, contributing to a wider fiscal deficit in 2012. Higher food and fuel prices – triggered mostly by increases in international prices – pushed overall inflation above 5 percent and contributed to further increase in the fiscal and current account deficits.

To ease these pressures and to energize the economy, the authorities have designed an economic program, which aims at restoring fiscal space, rebuilding foreign reserves, reducing banking sector vulnerabilities and fostering more inclusive growth.

Essential Information

Area: 164,150 sq km
Population: 10,835,873 (2012 est.)   
Capital: Tunis
Principal Towns: Sfax, Djerba, Sousse, Bizerta, Kairouan.
Languages: Arabic is the official language and French is widely used, particularly in education, commerce and administration. English is also spoken in business circles.
Gross Domestic Product: $44.7 billion (2012 est.)
GDP per capita: $4125.
Climate: Northern and coastal Tunisia has a Mediterranean climate with winter rainfall; this is greatest in the northern mountains. Further south and further inland the climate becomes increasingly dry with extremes of temperatures.
Currency: 1$≈1.6 Tunisian Dinar (TND)
 
DEMOGRAPHY
Age Distribution (2012 est.)
0-14 years: 23%
15-24 years: 16.5%
25-54 years: 44.7%
55-64 years: 8.1%
65 years and over: 7.7%
 
Population Growth: 0.964% (2012 est.)
Education: 74.3% of the total population age 15 and over can read and write

Visa Requirements: No visas are required.

  Independence Day of Tunisia, 20 March

Diplomatic representation of Tunis in Switzerland

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