Tunisia’s economy grew at an estimated annual rate of 1.0% in 2016 (2.0% excluding agriculture and fisheries) compared to 1.1% in 2015 (0.1% excluding agriculture). Growth in 2016 was driven mainly by the tradable services sector and the non-tradable activities sector, which grew each by 2.7% as well as the manufacturing industries sector (+0.9%).
Economic growth is projected to accelerate to 2.3% in 2017 through the recovery of the strategic sectors of agriculture, phosphate and manufacturing. In the medium term, economic growth is projected to pick up gradually to 2.8% in 2018 and 3.2% in 2019 against a backdrop of improved business climate through structural reforms and greater security and social stability. The fiscal deficit is expected to remain high at 5.9% of GDP in 2017. Fiscal sustainability will require reining in the public wage bill, expanding the tax base, and creating space for increased investment spending.