In this context, unemployment rose from 15% to 18% in the second quarter of 2020 (Wolrd Bank, Octobre 2020), a level last reached at the time of the 2011 revolution. Apollo 11 astronaut Michael Collins dies at 90, Biden to pitch child care and free university plan, Why a US photographer says 'sorry for the war' VideoWhy a US photographer says 'sorry for the war', The US embassy blast victims who fear being forgotten, Family meal wins international food photo contest, The Chilean pop sensation challenging repression, Kuwaiti woman's murder spurs demands for change, BBC Worklife: The jobs 'crushing' young workers, The birds on the balcony that found TikTok fame. Tunisia's key tourism industry has been particularly badly hit by the pandemic. Yet the political and economic troubles that Tunisia is facing are not just due to political indifference or mismanagement, according to TNI. Any Comment About This Content? Grenade sex toy sparks police alert in Germany, 150 Tunisians self-isolate in factory to make masks. About 30.7% of the total population of youths between ages 15 and 24 are currently unemployed in Tunisia today. The IMF expects the deficit to decline slightly to 9.3% in 2021 and 6.9% in 2022. Security forces responded with tear gas and water cannon. Latest Update: April 2021, Turvallinen työkalu kansainvälistä kauppaa varten. Growth in household and capital spending should boost domestic demand, while the expected return of higher levels of tourism is likely to bolster the external sector. In many ways, they are even worse today, which helps explain why Tunisians are returning to the streets again in 2021. Source: Therefore, any incident related to the contents or services must be resolved between the user and Export Entreprises S.A.; with no involvement or responsibility from Nordea Bank Abp or any of its subsidiaries, © 2016. Tourism, which suffered from terrorist attacks that hit the Tunisian soil, recovered considerably in 2019 with international arrivals rising to 9.4 million (13.6% increase year-on-year). The latest unrest comes almost exactly 10 years since the Tunisian revolution ushered in democracy and triggered the Arab Spring revolts across the region. Tunisia’s progress since the revolution in 2011 makes it an important democratic partner in a volatile region. Solid progress for several decades in the political, social and economic fields Tunisia is firmly committed to a process of democratisation since the fall of the political regime in power since 1987. Although the living conditions in Tunisia today is somehow better than in most other African countries, Tunisia just like most other developing countries around the world faces so many challenges especially when it comes to peace and economic stability. Ajantasaiset taloustiedot kaikkialta maailmasta, rahoitusalan tuotteiden reaaliaikaiset kurssit ja valuuttakauppaympäristö. Source: The economic context of Tunisia. IMPACT OF COVID-19: As of December 1, 2020, 3,260 deaths had been attributed to the pandemic in Tunisia, and the economy was forecast to contract by 7.0 percent for the year. Keywords Tunisia, EU, Mediterranean, Socio-economic challenges, Resilience, Democratisation Introduction More than half a decade after the so-called Arab Spring, the series of popular uprisings that sent shockwaves across the Middle East and North Africa in 2011, Tunisia remains the only country for which hope for a sustainable democratic transition remains justified. Outside Tunis, clashes were reported on Monday in the cities of Kasserine, Gafsa, Sousse and Monastir. 28 March 2018 - Economic Survey of Tunisia. Despite the ousting of longtime president Zine El Abidine Ben Ali in January 2011, the country has never recovered economically. With the total lockdown in April 2020, all foreign tourist bookings were cancelled, with an estimated 80% drop in Tunisia's tourism sector. On top of these problems, Tunisia’s macro-economic situation has deteriorated badly in recent years. Economic Structure Breeds Inequality and Discontent. Download pdf . Inflation has been estimated at 5.7% in 2020, and is expected to rise to 5.8% for 2021 and 6.3% for 2022. From independence in 1956 until the “revolution for freedom and dignity” at the end of 2010,Tunisia had only two presidents, and few elections Tunisia Economic Growth The economy is projected to rebound strongly in 2021 after a marked contraction in 2020. At the beginning of September 2020, the Tunisian Parliament finally invested a government of technocrats to try to turn around the country's economic situation. Police in Tunisia say they have arrested more than 600 people as a fourth night of violent protests saw protesters return to the streets. To cope with rising food prices or to compensate for job losses, households drew on their savings, receiving aid or borrowing money from relatives and postponing the payment of their obligations. Firstly the international companies left, then the tourists. Olive oil accounts for the largest share in agricultural exports, followed by dates, olives and fresh fruits. However, the chemicals and textiles and clothing sectors were growing until 2019. The BBC is not responsible for the content of external sites. International Trade Centre's COVID-19 Temporary Trade Measures webpage. Access Tunisia’s economy facts, statistics, project information, development research from experts and latest news. The many economic challenges ahead. Source: The Economist - Business Environment Rankings 2014-2018. Source: 2019 Index of Economic Freedom, Heritage Foundation. Professional training and research are both rising sectors. Prior to the revolution, the so-called Economic Miracle of Tunisia looked good to the outside observer, but inequality and discontent were rising rapidly for many years. We have come with exposed faces by day and not by night to say we want jobs...we want dignity.". To diversify markets, Tunisia needs to break its heavy reliance on the sluggish European market and intensively target the expanding African and Asian markets. Tunisia: Economic and Political Overview. The … On Monday, crowds of mainly young demonstrators again gathered in the centre of the capital, Tunis, throwing stones and petrol bombs at police. An improvement in production methods in the past years has allowed the sector to develop and modernise (cultivation of olive trees, fruit trees and palm trees), while enabling the country to reach a level of food sufficiency. From independence in 1956 until the “revolution for freedom and dignity” at the end of 2010, Tunisia had only two presidents, and few elections were truly democratic. The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. 4 | Tunisia’s Economic Challenges and communication services that have a high value added. At the core of the protests in 2011 was anger over the widespread corruption in Tunisia and corruption remains a main problem for the Tunisian economy and it is certainly something, which is causing long-term growth to be lower than it could be been (permanently shifting the Solow curve to the left). Elections in late 2019 swept in a new mosaic of smaller political movements reflecting the public’s deep … IMF – World Economic Outlook Database, To find out about the latest status of the COVID-19 pandemic evolution and the most up-to-date statistics on the disease in Tunisia, visit the, published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on, To find out about the latest public health situation in Tunisia and the current sanitary measures in vigour, please consult the dedicated pages on the, For the information on the travel restrictions undertaken by the government of Tunisia, please consult the website of the national, For the up-to-date information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports, if applicable), please consult the website of the. The first is to establish political stability and anchor democracy. The Tunisian economy is not in good shape. Nordea and the Nordea logo are registered trademarks. Economy Trade Figures Government & Politics COVID-19. However, many of the economic problems that drove people to the streets a decade ago still remain. After the revolution and a series of terrorist attacks, including on the country’s tourism sector, barriers to economic inclusion continued to add to slow economic growth and high unemployment. Tunisia faces severe economic problems and a third of its young people are unemployed. Longtime Tunisian President Zine El Abidine Ben Ali resigned about a month after the protests started. The overall budget deficit increased to 9.8% of GDP in 2020, due to the Covid-19 emergency measures. 17. Poverty and unemployment in Tunisia have soared over the past decade, especially among the young and rural areas. Social tensions have worsened under sporadic lockdown measures and a nightly curfew in place since October to combat the spread of the coronavirus, our correspondent says. For the information on the economic recovery scheme put in place by the Tunisian government to address the impact of the COVID-19 pandemic on the national economy, please visit the website of the, For the information on the local business support scheme established by the Tunisian government to help businesses to deal with the economic impacts of the COVID-19 epidemic on their activity, please visit the website of, For the up-to-date information on possible support plans for exporters in Tunisia, if applicable, please consult the website of, IMF's policy tracking platform Policy Responses to COVID-19, Economic freedom in the world (interactive map), 2019 Index of Economic Freedom, Heritage Foundation, The Economist - Business Environment Rankings 2014-2018, Ministry of Development, Investment and International Cooperation, Ministry of Vocational Training and Employment, portal of the National Observatory of New and Emerging Diseases (ONMNE) on COVID-19, World Bank's Map of SME-Support Measures in Response to COVID-19. Of the many challenges facing the government being assembled by the prime minister designate, Habib Essid, three stand out. Tunisia faces severe economic problems and a third of its young people are unemployed. Tunisia. Tunisia deploys police robot on lockdown patrol, 'A horror story': India Covid deaths pass 200,000. Uncertainty regarding the duration of the pandemic clouds the outlook, however. There are fears the real number is even higher, as hospitals continue to turn dying patients away. The economy of Tunisia is in the process of being liberalized after decades of heavy state direction and participation in the country's economy. The service sector employs 54.8% of the country's workforce. In 2020, the already precarious situation was aggravated by the economic crisis caused by the Covid-19 pandemic. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms. Tunisia sets off a domino effect through the Arab World, the so-called "Arab Spring." Tunisia … Divisions within Tunisia’s political leadership are preventing the government from addressing the country’s political and socio-economic challenges. Photo Credit: Yamen, via Wikipedia Commons. However, a persistent economic crisis, political disaffection, and the inherent difficulties of a major political and social transition continue to threaten the country’s stability. The graph below illustrates this. governance, inclusive growth, and structural economic challenges - were in many ways at the root of the revolution, they remain outstanding key challenges for Tunisia’s future governments. While immediate actions are required to manage the political transition, as well as macroeconomic Why a US photographer says 'sorry for the war' Video, Why a US photographer says 'sorry for the war', The birds on the balcony that found TikTok fame. They chanted "no fear, no fear, the street belongs to the people". The economic crisis has worsened under the pandemic. The country has suffered further political upheaval due to the fall of the government formed by Elyes Fakhfakh in July 2020, which added further uncertainty, and labour unrest has been affecting mining production. Confronting Social and Economic Challenges in Tunisia Despite a gloomy global environment and a revolution that was economically devastating for the country, state and society so far have held on. The economic crisis due to the Covid-19 pandemic impacted the industrial sector, mainly the textile and clothing sector and the mechanical and electrical engineering sub-sectors. להורדת ה-pdf. "This has nothing to do with protest movements that are guaranteed by the law and the constitution," Mr Hayouni said. Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. For the up-to-date information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports, if applicable), please consult the website of the Tunisian Customs Authority (in French and Arabic).For a general overview of trade restrictions due to COVID-19 pandemic in the world, please consult the International Trade Centre's COVID-19 Temporary Trade Measures webpage. GDP reached a negative rate of -8.8% in 2020. The population significantly increased its stock levels, boosting demand for wheat products by 26% and causing major disruptions in distribution channels.Industry represents 22.7% of the GDP and employs 32.5% of the active population. In Tunisia, meanwhile, the country that is often labelled as the only success story of the Arab uprisings is also experiencing mounting political and economic frustrations. © 2021 BBC. However, hopes that this would bring more jobs and opportunities have been disappointed. Financial institutions are functioning properly, companies are operating and tourism, although hit hard, has shown signs of recovery. Video, The birds on the balcony that found TikTok fame, Man charged over oxygen SOS for dying grandfather, Samsung heirs to pay record inheritance tax, Why India's Covid crisis matters to the whole world, Spears asks to address court over conservatorship. }}, Economic freedom in the world (interactive map) The economic crisis has worsened under the pandemic. To find out about the latest status of the COVID-19 pandemic evolution and the most up-to-date statistics on the disease in Tunisia, visit the official portal on COVID-19 of the Ministry of Health, which also provides data on the geographical distribution of the epidemic in the country.For the international outlook you can consult the latest situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country. Poverty and vulnerability are expected to increase and reverse the trend observed in recent years of rapid poverty reduction. Faced with increasing debt and deficit levels and shrinking foreign currency reserves, Tunisia agreed a loan of $2.9 billion with the International Monetary Fund in 2016. Transport is the second most severely impacted service sub-sector, with losses estimated at 60% in 2020. While the Tunisian government may have maintained its democratic principles, the government itself finds difficulty in uniting on key economic issues. Control measures and restrictions have amplified the drop in foreign demand for the production of these subsectors, reducing exports of mechanical and electrical engineering and textiles by 27% by (year-on-year) mid-2020.The local economy is largely orientated towards services, which account for 61.7% of the GDP, including the booming sectors of ICT (information and communication technologies) and tourism. Then in 2013, with the government facing a possible economic crisis, it decided to turn to the IMF. Two Tunisian dinars. VideoThe birds on the balcony that found TikTok fame, Why crying can help you succeed in business, Apollo 11 astronaut Michael Collins dies at 901, 'A horror story': India Covid deaths pass 200,0002, Man charged over oxygen SOS for dying grandfather3, Samsung heirs to pay record inheritance tax4, Biden to pitch child care and free university plan6, Why India's Covid crisis matters to the whole world7, Spears asks to address court over conservatorship8, What is the row over Boris Johnson's flat about?9, Grenade sex toy sparks police alert in Germany10. Tunisia was deeply impacted by the Jasmin Revolution of 2011. IMF – World Economic Outlook Database, Tunisia is firmly committed to a process of democratisation since the fall of the political regime in power since 1987. Agricultural and agri-food activities on the local market have been affected by the Covid-19 pandemic. Read about our approach to external linking. The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Agriculture is a key sector of the Tunisian economy, accounting for 10.4% of the GDP and employing 12.7% of the workforce (World Bank, 2020). According to the IMF's updated April 2021 forecast, GDP growth is expected to pick up to 3.8% in 2021 and stabilise at 2.4% in 2022, subject to the post-pandemic global economic recovery.Public debt was recorded at 87.6% in 2020 and, according to updated IMF estimates of April 2021, is expected to increase to 91.2% in 2021 and 93.9% in 2022. Organic farming is also booming, with Tunisia being one of the most productive countries in Africa. In 2020, extreme poverty - measured using the international poverty line of USD 1.90 per day - will still be less than 1%; however, poverty measured using the line of USD 3.20 per day will increase by about 1.3 percentage points, from 2.9% to 4.2% (World Bank, October 2020). The clashes took place mainly in densely populated and under-privileged areas where the relationship between young people and the police is historically tense, the BBC's Rana Jawad in Tunis reports. February 28, 2019. were updated by the IMF in January 2021. Earlier on Monday, demonstrators gathered outside government offices in Tunis's Bourguiba Avenue calling for those arrested in recent days to be released. In this excerpt from our Watch List 2019 for European policymakers, Crisis Group urges the EU to support measures that will prevent further polarisation. Katso, miten voimme auttaa sinua laajentamaan liiketoimintaasi ulkomaille. Khaled Hayouni said two policemen had been injured. Find more information about your business sector on our service Market reports. … While the COVID-19 crisis has aggravated the situation, economic resilience has been drained by several years of indecisive public policies and a growing protectionist attitude. October 2020, Note 2: The GDP growth projections for 2021 and 2022 (Constant Prices, Annual % Change) The wage bill increased by 14% by mid-2020, adding to spending pressures and signaling lack of … What is the row over Boris Johnson's flat about? Nordea Trade offers a set-content, database and tools provided and managed by Export Entreprises. For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19. World Bank, The promotion of inclusive economic growth remains a primary challenge in Tunisia. For a summary in English of the economic and fiscal measures in vigour, consult the dedicated page from KPMG.For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) taken by the Tunisian government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Tunisia in the IMF’s Policy Tracker platform. Among sectors in decline there are leather and shoe industry, paper, cardboard, plastic, wood, food and construction materials. The current account deficit remained high, at 6.8% of GDP for 2020, but improved (from 8.4% in 2019) as imports declined faster than exports. © Export Entreprises SA, All Rights Reserved. Other factors affected growth in 2020. To overcome the third challenge of increasing income inequality, Tunisia must review its public finance with a view to achieving social … Report It to Us. In 2011, the Tunisian economy had too high inflation levels reaching almost 6.4% due to the effect of the wage increase, depreciation and high international food and fuel prices that would be passed on to the domestic prices despite the high level of the subsidies. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure. In contrast, the fiscal deficit project to reach 12%, aggravated by an 11% decline in revenues by mid-year, reflecting the reduction in economic activity and tax deferral measures. The country's industrial sectors are predominantly export-oriented. Economy of Tunisia. It had been hit early on after the 2011 revolution by several negative shocks, including a collapse in tourism (especially after the rising insecurity of 2012-13, and the terrorist attacks of 2015-16), the loss of the Libyan market, and a fall in the production of phosphates and oil, due to badly managed work-related disputes in state-owned enterprises. Read about our approach to external linking. Because of corruption, inequality, lack of … Tunisia's economic challenges. The growth rate in services sector was 0.6%. “That’s why people feel that nothing changed on economic issues.” Tourism, public sector jobs down. Tunisia's economy – structurally designed to favor vested interests – faced an array of challenges exposed by the 2008 global financial crisis that helped precipitate the 2011 Arab Spring revolution. 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