Economy
From The Report: Tunisia 2018
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The country is working to gradually improve its economic indicators by implementing tough, yet necessary, structural reforms. Although significant strides have been made since 2011, Tunisia continues to face acute macroeconomic imbalances. While reform efforts have suffered from changing administrations in the years following the revolution, in 2018 growth is projected to pick up to 3%, according to the IMF, or 2.8% by government estimates. Both are higher than the trend Tunisia has experienced in the years since the 2011 revolution, which have seen average growth of 2% per annum. This chapter contains interviews with Youssef Chahed, Head of Government; and Samir Majoul, President, Tunisian Union of Industry, Trade and Handicrafts.

Articles from this Chapter

Overview

Renewed potential: Reforms are under way to tackle structural issues
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Tunisia is working to gradually improve its economic indicators by means of tough yet necessary structural reforms. Although significant strides have been made since 2011, the country continues to face acute macroeconomic imbalances, while coincident reforms have suffered from changing administrations in the years following the revolution, negatively affecting economic growth. Appointed in August 2016 as the head of a new national unity government, Prime Minister Youssef Chahed in early…

Analysis

Currency concerns: A range of initiatives aim to support the dinar and boost foreign reserves
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The Tunisian dinar is pegged to a weighted basket of currencies, which includes the dollar and yen, but is dominated by the euro. In recent years, however, the government has introduced greater flexibility within the exchange-rate regime, in line with the IMF’s calls to do so. This has led to a significant devaluation of the country’s currency, from €1:TD1.91 at the end of 2010 to €1:TD2.94 in December 2017. Meanwhile, foreign-exchange reserves have fallen to the critical threshold…

Analysis

A recipe for success: Adjustments foster a more welcoming business environment
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Tunisia’s rank in the World Bank “Doing Business” index was 88th among 190 economies in 2018, down from 77th in 2017 and 75th in 2016. While substantial barriers to investment remain, due in part to persisting malpractices and the uncertainty since the country’s revolution of 2011, the government is working towards improving key factors such as the stability of the tax system and the efficiency of the administration. Impediments to Investment The local business environment…

Interview

Diverse opportunities: Youssef Chahed, Head of Government, on sustainable growth, public finances and new sources of investment
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Interview:Youssef Chahed How can Tunisia secure a 5% GDP growth rate? YOUSSEF CHAHED: From the revolution to 2016, Tunisia’s GDP growth averaged 1% per year. In 2017 we increased this to above 2%, and we expect 3% in 2018 and 5% by 2020. To achieve this, we need to relaunch the three main growth drivers: investment, exports and production. In 2017 investments increased by 11% on 2016, and we aim to further target foreign investment. For this, we enacted an investment law and the tax incentives…

Interview

Private expansion: Samir Majoul, President, Tunisian Union of Industry, Trade and Handicrafts, on attracting investment
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Interview: Samir Majou What efforts are necessary to stimulate growth for private enterprises in the country? MAJOUL: Tunisia needs to turn its focus to support private sector enterprises instead of public ones. Currently, the large public sector is a burden on the finances of the country. The government has at least one company in every sector of the economy, and many of these are unprofitable. They cost significant sums of money to operate. Furthermore, when public companies make a profit, the…