Tunisian President Kais Saied emphasized the importance of enhancing consultation and dialogue mechanisms between his country and the European Bank for Reconstruction and Development (EBRD) to fund promising projects in Tunisia that meet the choices of the Tunisian people. This includes sectors like renewable energy, water desalination, health, infrastructure, and modern technology.
President Saied’s statements came during his meeting with the EBRD President, Odile Renaud-Basso, at the Carthage Palace, according to a statement issued by the Tunisian Presidency.
Saied affirmed the state’s support for private initiatives and the business sector, as much as its commitment to supporting public facilities and institutions, given their pivotal role in the national economy and in protecting fundamental human rights such as health and transport.
The Tunisian President also stressed the state’s commitment to providing the necessary legislative and judicial guarantees and creating a conducive environment to attract foreign investments and encourage Tunisia’s partners to fund more diverse projects that contribute to improving growth rates and driving development.
Tunisia’s economic landscape has been shaped by a series of challenges, compounded by the global impacts of the COVID-19 pandemic and geopolitical tensions. The country’s GDP growth slowed significantly after the 2011 revolution, leading to a decade of lost growth. This was further exacerbated by the pandemic, with the economy contracting by 8.7% in 2020. Recovery has been sluggish, with a severe drought in the first half of 2023 further slowing economic growth to only 1.2%. The agriculture sector, in particular, suffered a 9% decline due to low rainfall, highlighting the need for reforms to adapt to climate change. However, there have been positive signs in the tourism sector, showing robust growth and aiding a partial economic recovery.
The inflation rate in Tunisia has been a pressing concern, reaching 10.4% in February 2023, the highest in over three decades, driven mainly by rising energy and food prices. This inflation surge has placed significant pressure on the economy, underscoring the urgency for reforms to promote sustainable growth.
Politically, Tunisia has been navigating through a complex period marked by President Kais Saied’s controversial consolidation of power, leading to political instability and uncertainty. This situation has strained the country’s democratic transition and economic stability, increasing the risk of unrest.
Looking forward, the African Development Bank Group’s economic outlook for Tunisia projects a modest GDP growth of 1.9% in 2023, driven by industry and services. However, the outlook remains cautious, with high unemployment rates, particularly among women, young people, and university graduates, posing significant challenges to the country’s socio-economic stability.
