Tunisia

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

Over the last ten years, Tunisia's average annual growth rate has been about 5%. Since 2001 Tunisia has appeared among the "emerging" countries. Strategic choices have been made: liberalization and progressive opening up (joining the WTO, association agreement with the EU), keeping the budgetary deficit down to a reasonable level, macroeconomic stability (regular growth of national wealth, inflation curbed), careful management of the currency and exchange rates, current deficit under control. The official unemployment rate stays at about 14.5%. The current deficit continues to drop thanks to the upturn in the balance of trade and to maintaining transfers from immigrants at 5% of GDP. Private investment has slightly shrunk.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	28.26	29.04	30.84	34.14e	37.78e
GDP (constant prices, annual % change)	6.0	4.0	5.4	6.0e	6.2e
GDP per capita (USD)	2,845.59	2,891.89	3,031.59e	3,313.39e	3,619.28e
Inflation rate (%)	3.6	2.0	4.5	3.0e	3.0e
Unemployment rate (% of the labor force)	14.2	14.2	n.c.	n.c.	n.c.
Current Account (billions USD)	-0.56	-0.31	-0.70	-0.87e	-1.04e
Current Account (in % of GDP)	-2.0	-1.1	-2.3	-2.6e	-2.7e

Source: IMF - World Economic Outlook Database; ILO, Laborstat - Yearly Statistics

Note: (e) Estimated data

Socio-demographic indicators	2004	2005
Unemployment rate (%)	14.2	14.2

Source:

Main sectors of industry

Agriculture has shown high growth rates and has allowed the country to reach a satisfactory level of food safety. These performances are the consequence of large-scale efforts made to support and modernize within the framework of a policy of development and regulation of agricultural and rural activities. Effectively, domestic production covers national needs by nearly 48% for cereals, 100% for livestock breeding products or 88% for oils. In spite of the development of other sectors of the national economy, agriculture keeps its social and economic importance: it provided about 12.3% of GDP and employed 16.3% of the workforce in 2006. As for the manufacturing industry, Tunisia is the leading African industrial exporter in absolute value. The textile and agri-food sectors represent 50% of production and 60% of employment in the manufacturing industry.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	3.0	3.8	6.3
Value added (in % of GDP)	11.3	28.4	60.3
Employment by sector (in % of total employment)	n.c.	n.c.	n.c.

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.42	1.29	1.25	1.30	1.33

Source: World Bank - World Development Indicators

Foreign trade in figures

Tunisia is continuing its policy of opening up its economy to the outside world and has signed an association agreement with the European Union which will do away with tariff and trade barriers on most goods by 2008. Tunisia has also signed a trade and investment framework agreement (TIFA) with the United States which will later become a free trade agreement. The share of foreign trade in the country's GDP has reached almost 100%. Tunisia's three main partners for import and export remain the same, i.e. France, Italy and Germany. The main goods exported are clothes, electrical and electronic equipment, fuels and petroleum, animal and vegetable fats and oils; whereas the main imported goods are fuels and petroleum, machines, electrical and electronic equipment, vehicles and cotton.

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	8,981	10,297	12,110	12,456	n.c.
Exports of goods (millions USD)	6,857	8,027	9,679	10,488	n.c.
Imports of services (millions USD)	1,450	1,612	1,986	2,182	n.c.
Exports of services (millions USD)	2,681	2,937	3,629	4,004	n.c.
Imports of goods and services (annual % change)	-3.8	-0.5	3.5	1.1	1.4
Exports of goods and services (annual % change)	-3.7	0.1	7.8	3.2	3.9
Imports of goods and services (in % of GDP)	49.5	47.7	49.9	50.6	54.3
Exports of goods and services (in % of GDP)	45.2	43.8	46.9	48.0	54.4
Trade Balance (millions USD)	-2,123	-2,269	-2,430	-1,968	n.c.
Trade Balance (including service) (millions USD)	-893	-945	-787	-146	n.c.
Current Account (millions USD)	-746	-730	-551	-303	n.c.
Current Account (in % of GDP)	-3.5	-2.9	-2.0	-1.1	n.c.
Foreign trade (in % of GDP)	94.7	91.5	96.8	98.6	108.7

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	Comtrade, 2005.
France	32.9%
Italy	24.0%
Germany	8.4%
Spain	5.5%
Libya	4.5%

Main suppliers (% of imports)	Comtrade, 2005.
France	23.5%
Italy	20.9%
Germany	8.2%
Spain	5.1%
Libya	3.9%

Source: Comtrade, 2005.

Main products

Main exports (% of exports)	Comtrade, 2005.
Articles of apparel and clothing accessories	23.6%
Electrical machinery and equipment	14.5%
Mineral fuels, mineral oils	12.9%
Articles of apparel and clothing accessories, knitted	5.9%
Animal or vegetable fats and oils	4.3%

Main imports (% of imports)	Comtrade, 2005.
Mineral fuels, mineral oils	13.7%
Machinery and mechanical appliances	10.8%
Electrical machinery and equipment	10.7%
Vehicles other than railway or tramway	6.7%
Cotton	6.5%

Source: Comtrade, 2005.

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: Tunisian Union of Industry, Trade and Crafts (UTICA)Agency for Agricultural Investment Promotion National Observatory of Agriculture Tunisian industry investments
Statistical Office: National Statistics Institute (INS)
Central Bank: The Central Bank of Tunisia
Stock Exchange: Tunis Stock Exchange
Online newspapers: Le temps (only in French)
La Presse (only in French)
AL-Chourouk (only in Arabic)
Search Engines: Marweb Tunisie
Bab el Web
Winoo
Ballouchi
Economic portals: Tunisiaonline - news

Political outline

Executive Power: Article 37 of the Constitution lays down that "the executive power is exercised by the President of the Republic assisted by a government led by a Prime Minister".The President of the Republic is the Head of State. He is elected for five years by universal, free, direct and secret suffrage, and by an absolute majority of the votes cast. The President of the Republic is the guarantor of national independence, the integrity of the country, the observance of the Constitution and the laws as well as the enforcement of treaties. He sees to the regular functioning of the constitutional public authorities and ensures the continuity of the State. He benefits from jurisdictional immunity during and after the end of his period of office. The President of the Republic is the Supreme Head of the Armed Forces. He accredits diplomatic representatives to foreign powers. The President of the Republic directs the general policy of the State, defines its fundamental options and informs the Chamber of Deputies. The President of the Republic appoints the Prime Minister and, on his recommendation, the other members of the government. The President of the Republic presides over the Council of Ministers. The President of the Republic appoints civil and military high-ranking civil servants on the government's recommendation.
Legislative Power: The people exercises the legislative power through a representative assembly, called, since 1981, "Chamber of Deputies" and the Chamber of Councillors, or by referendum. The Chamber of Deputies is composed of 189 deputies elected by universal, free, direct and secret suffrage for a five-year term.
Laws are initiated conjointly by the President of the Republic and the members of the Chamber of Deputies. The bills presented by the President of the Republic have priority.
Main political parties: Democratic Constitutional Rally (RCD), the majority party.
Opposition parties:
the Progressive Democratic Party (RSP)
the Social Liberal Party (PSP)
the Unionist Democratic Union (UDU)
As for the MTI (Renaissance Party), its legalization visa has been refused.
Current political leaders: President: Zine El Abidine BEN ALI (since November 1987) - RCD
Prime Minister: Mohamed EL GHANNOUCHI (since November 1999) - RCD
Next election dates: Presidential elections: 2009