Since the sharp contraction of the economy due to COVID-19 in 2020, Tunisia’s growth has remained moderate. Following a rebound in 2021 (4.7%) and 2022 (2.8%), real growth stagnated at 0.2% in 2023, with a slight recovery to 1.6% in 2024. Drought, global financing uncertainties, and subdued demand have influenced the recovery. In the first half of 2025, GDP rose by 2.4% year-on-year, driven by agriculture, manufacturing, and domestic service demand improvements.

On the external front, Tunisia experienced positive developments in 2024. Tourism revenues increased by 8.3%, and remittances rose by 11.2%, helping to offset a 7.5% increase in the merchandise trade deficit. Consequently, the current account deficit narrowed from 2.3% to 1.9% of GDP.

Although the fiscal deficit eased to 6.3% of GDP in 2024, it remains higher than the 2019 level of 2.9%. Public debt increased from 67.8% of GDP in 2019 to 84.6% in 2024, with gross financing needs rising from 7.9% to 16.0%, primarily due to debt amortization.

Foreign Direct Investment (FDI) increased by 4.4% in 2024, covering only a fifth of the combined current account and public external debt obligations. Authorities relied more on domestic sources, including a TND 7 billion (US$2.3 billion) loan from the Central Bank in 2024 and 2025, which covered about a quarter of the financing needs for 2024.

Inflation has moderated, decreasing from 10.4% in February 2023 to 5.3% in July 2025, aided by easing global prices, lower demand, and a high policy interest rate.

The unemployment rate declined slightly to 15.3% in Q2 2025 (down from 15.8% in 2023), while labor force participation remains about 1.2 percentage points below pre-COVID levels.