World Bank: Tunisia's economy recovery amid challenges

The World Bank reported that the Tunisian economy has continued its recovery since 2025, with real GDP growth of 2.7% in 2025 and 2.4% in the first half of 2026, surpassing pre-COVID-19 pandemic levels. It explained that sectors such as food industries, mechanical industries, and hotels contributed to supporting growth, while the petroleum and textile sectors declined. Although the unemployment rate decreased to 14.9% during the second quarter of 2026, this decline reflects changes in the labor force participation rate rather than an increase in active labor markets. Inflation indicators also declined to 5.1% in July 2026. On the external front, the trade and energy deficits increased significantly, and international reserves fell. Economic growth is expected to reach 2.3% in 2026 amidst ongoing structural challenges, especially in the water sector, where the bank warns that resource scarcity could lead to economic losses of up to 6.4% of GDP by 2050 unless measures are taken to address high demand and persistent shortages.

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