Economic trends
Over the past decade, Tunisia it had an average annual growth of around 5%. In 2009 and 2010, the country has suffered the effects of the economic crisis with a contraction of GDP and an anuual growth below 4%. Poor cereal harvests and reduction in oil production had been added to the negative impact of the slowdown in industrial activity export-oriented. 2011 forecasts were more optimistic (with an average annual growth of around 5%). However, even if the political revolution that erupted in early 2011 opens real opportunities for this country, it should take these forecasts downwards.
The country has nonetheless managed to keep its budget deficit at a reasonable level. Strategic choices have been made by the government, particularly economic liberalization and the gradual opening of the economy (accession to the WTO Agreement with the EU), macroeconomic stability (steady increase of national wealth, contained inflation), keeping public finances under control, prudent management of monetary and exchange rates and control of the current account deficit.
The growth drivers are the export and consumption. In purchasing power parity, Tunisia is close to the income levels of developed countries. One can also note much progress in terms of life expectancy of women's place in society, or health infrastructure and education. The official unemployment rate has stabilized (about 14%), but it is still highest among young people, especially young graduates, whose unemployment rate exceeds the average rate by 3 to 5 points.
Main branches of industry
Agriculture is a key sector of Tunisian economy and an improvement in its production in the past years has allowed for the development of the sector (cultivation of olive trees, fruit trees and palm trees) and also has enabled to the country to reach a level of food sufficiency. Organic farming is also booming, Tunisia being the second more productive country in this respect. Agriculture accounts for around 11% of the GDP and employs around 25% of the workforce. This performance is the consequence of large-scale support and modernization efforts made within the framework of a development policy and of agricultural and rural activities regulation.
The non-manufacturing industries account for 17% of the GDP. The manufacturing industries, mainly textile and food, make up 20% of the GDP and are damaged mostly by the Asian competition. They are predominantly orientated towards export.
The local economy is largely orientated towards services, which account for 40% of the GDP, including the booming sectors of ICT (Information and communication technologies) and tourism.
International trade
The current account of Tunisia is structurally deficient. The balance of trade in services is positive, but it can't offset the deficit of the trade balance. In 2008 and 2009 Tunisia showed a trade balance deficit of 10% of the GDP because of the surge in oil prices. After a slight improvement during the year 2010, a deterioration of the current account was again expected for 2011. In this context, the impact of the political events of early 2011 shouldn't reverse this trend.
Tunisia is following through its policy to open up its economy and has signed an association agreement (summary in French) with the European Union, removing tariff and trade barriers on most goods. It also signed a Trade and Investment Framework Agreement (TIFA) with the United States, which will later become a free trade agreement. During the first half of 2010, the country experienced a dynamic resumption of foreign trade, especially an increase in exports of mechanical, electric and electronic goods. However, this growth also brought about a worsening of the trade balance, due to trade in agricultural products and energy.
Tunisia's main import and export partners are the European Union, Libya, Russia and China. France remains its first supplier, despite a decrease of two points (19.4% against 21.5% in 2009). Tunisia's main export goods are textile and leather, mechanical and electrical products, food products and energy products. The country imports raw and semi-finished materials, equipment goods, consumption goods (other than food) and financial and insurance services.
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Last updates: February 2012
