Tunisia returned to moderate growth of 1.4% in 2024 after stagnating the previous year, driven by a strong agricultural season and a rebound in services, particularly tourism, according to Central Bank Governor Fathi Nouri.
The expansion, fueled mainly by domestic demand and investment recovery, offset weak industrial output linked to sluggish Eurozone demand and difficulties in the extractive sector.
Unemployment eased slightly to 16%, while inflation fell to 6.2% by year-end, down from 8.1% in 2023, thanks to lower commodity prices and a stable dinar.
On the external front, the current account deficit narrowed to -1.5% of GDP, supported by rising tourism revenues and remittances, though the trade deficit widened as imports outpaced exports. Foreign reserves rose to the equivalent of 121 days of imports, despite higher debt repayments.
Public finances also improved, with the budget deficit shrinking to 6% of GDP and the public debt ratio easing to 81.2%, reflecting tighter spending controls and higher revenues.
Despite progress on stabilization and disinflation, Nouri cautioned that growth remains too weak to absorb high unemployment, while global price risks warrant maintaining a prudent monetary policy with the key rate held at 8% throughout 2024.
TunisianMonitorOnline (CBR)
