Tunisia

Following a sharp decline in 2020, GDP is projected to expand at an annual rate of 3 to 3¼ per cent in 2021 and 2022. After a strong rebound in the third quarter of 2020, the tightening of containment measures due to rising infections has particularly affected labour-intensive services sectors. High unemployment will weigh on household incomes, damping private consumption. Investor confidence remains subdued due to little progress on structural reforms and uncertainty related to the financing of the high fiscal deficit. The gradual removal of containment measures in Tunisia’s main trading partners will boost merchandise exports, but persisting health risks will continue to weigh on tourism activity and job creation until vaccination becomes widely deployed domestically and in main trading partners.