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Since the sharp COVID-19 contraction in 2020 (-9%), Tunisia¡¯s growth has remained moderate. After a rebound in 2021 (4.3%) and 2022 (2.7%), growth was 0% in 2023 and reached 1.4% in 2024. Recovery has been shaped by drought, global financing uncertainty, and subdued demand.

On the external front, Tunisia saw positive developments in 2024. Tourism revenues rose by 8.3% and remittances by 11.2%, helping to offset a 7.5% rise in the merchandise trade deficit. As a result, the current account deficit narrowed from 2.3% to 1.7% of GDP.

While the fiscal deficit eased to 6.3% of GDP in 2024, it remains higher than the 2019 level (2.9%). Public debt rose from 67.8% of GDP in 2019 to 81.2% in 2024, with gross financing needs increasing from 7.9% to 16.0%, largely due to debt amortization.

Although FDI increased by 4.4% in 2024, it covered a fifth of the combined current account and public external debt obligations. Authorities relied more on domestic sources, including a TND 7 billion (US$2.3 billion) Central Bank loan in 2024 and 2025, covering about a quarter of 2024¡¯s needs. 

Inflation has moderated, falling from 10.4% in February 2023 to 5.9% in March 2025, supported by easing global prices, lower demand, and a high policy rate. Nonetheless, it remains slightly above the pre-COVID average (5.3%), with food inflation at 7.8%, affecting lower-income households the most.

The unemployment rate rose slightly to 16% in Q3 2024 (from 15.8% in 2023), while labor force participation remains about 1.2 percentage points below pre-COVID levels.

Last Updated: Apr 25, 2025

The Country Partnership Framework (CPF) for Tunisia for FY2023¨C2027 lays?out the World Bank's strategy in the country since June 2023. This CPF aligns with Tunisia's national and sectorial strategies. Informed by the Systematic Country Diagnostic (SCD) and the Country Climate and Development Report (CCDR), the CPF aims to transition Tunisia to faster and more inclusive growth through three high-level outcomes:

1. Creating quality jobs in the private sector.

1. Strengthening human capital.

1. Enhancing climate resilience and reducing carbon emissions.

Å·ÃÀÈÕb´óƬ in Tunisia is supporting the Government in advancing these goals through multiple programs, with an immediate focus on Energy, Water, Human Capital and perspectives on Connectivity. Furthermore, the CPF aims to integrate two cross-cutting themes ¡ªgender and social accountability, participation, and trust ¡ª across programs. In addition to lending, the CPF lays out an ambitious agenda for advisory work and technical assistance.   

The CCDR, launched in November 2023, provides a wide range of measures to tackle substantial climate challenges, encompassing water scarcity, rising sea levels, floods, and reliance on fossil fuel imports. The CCDR, aligned with national climate transition strategies, aims to mitigate climate impact while fostering economic recovery and employment opportunities by providing actionable recommendations for adaptation and decarbonization.

Last Updated: Apr 25, 2025

Å·ÃÀÈÕb´óƬ supports Tunisia¡¯s efforts to promote renewable energy, strengthen human capital and social resilience, improve water management, and enhance connectivity.

Current projects include:

• Tunisia-Italy Electricity Integration and Renewable Energy Ecosystem: Å·ÃÀÈÕb´óƬ has provided $268 million in financing to support the?that will link energy grids between Tunisia and Europe and support renewable energy trade essential to Tunisia's sustainable development and climate change strategy.?The landmark project strengthens the World Bank's longstanding partnership with the Tunisian government in the energy sector while positioning the country as a regional hub for renewable energy by connecting Tunisia's power grid to the much more extensive European network through a 600-megawatt undersea cable. The ELMED project is also supported by the Government of Italy, the European Union, the European Bank for Reconstruction and Development, the European Investment Bank, and the German Development Bank (KfW). Additional funding includes $25 million of concessional financing from the Green Climate Fund mobilized through the Sustainable Renewables Risk Mitigation Initiative.

• (Projet d¡¯Intensification de l¡¯Agriculture Irrigu¨¦e en Tunisie, PIAIT) aims to improve the reliability and efficiency of irrigation and drainage services in public irrigation schemes in the north of Tunisia. The project improves the quality of service through rehabilitation of infrastructure and strengthening of the institutional framework. The project is set to reach 10,000 beneficiaries, over an area of 24,000 ha by June 2026. Improvements in agriculture productivity are starting to show in the Goubellat site, where drainage works allowed land use to increase from 10% to 65%.  

• ?(Projet de modernisation de l¡¯Enseignement Sup¨¦rieur en soutien ¨¤ l¡¯Employabilit¨¦ des dipl?m¨¦s - PromESsE), which closed in December 2024, significantly contributed to improving tertiary education student employability and strengthening higher education management. With two main components¡ªemployability enhancement and management strengthening¡ªthe project has benefited over 22,000 students through certifications, new degree courses, and career and certification centers. It has also established quality committees, achieved international accreditations for four medical faculties and engineering schools, and supported improving Tunisian universities in global rankings. Key achievements include creating over 40 industry-linked degree programs, implementing over 60 graduate tracer studies, and launching performance-based funding for five public universities. (Renforcement de l'Enseignement Sup¨¦rieur pour l'Employabilit¨¦, l'Innovation et la R¨¦silience; RESPIRE), approved on February 27th, 2025, is a follow-on project that seeks to improve the employability of students and strengthen the quality and governance of higher education and scientific research institutions. 

• ?aims to improve public and primary school learning conditions and increase access to public preschool education. PREFAT aligns with national education strategies supporting preschool universalization and equitable access to quality education. To date, PREFAT has supported access to pre-primary and primary education in Tunisia by constructing and equipping 91 preschool classrooms and rehabilitating over 70 primary schools in 31 districts, benefitting over 700,000 students. The project also supported teacher training, with at least 20,000 teachers, 2,000 school directors, 800 pedagogical assistants, and 600 inspectors benefitting from professional development programs, including specific modules focused on pedagogy and teaching practices. The project has implemented learning assessments to identify knowledge gaps and improve instruction and learning, including the first Early Grade Reading Assessment (EGRA) in 2021 and the Early Grade Mathematics Assessment (EGMA) in 2024.

• Å·ÃÀÈÕb´óƬ is supporting Tunisia's social protection system through the AMEN Social Program, which, as of December 2024, has reached over 370,000 vulnerable households (more than 10% of the population) with monthly cash transfers and more than 620,000 low-income households with free and subsidized healthcare services. Of the households receiving Permanent Cash Transfers, 54% are headed by women. During the COVID-19 pandemic, the program efficiently distributed emergency cash transfers to approximately 900,000 households. Leveraging this adaptive social registry and strong delivery system, the AMEN program expanded its coverage to include family allowances for children under six years old, benefiting over 150,000 children. The project has prioritized digital transformation, including digitized cash transfers, automatic data exchange to simplify the assessment of program eligibility, and deduplication of households through a robust social ID system mapped to the civil registry.

• has helped the country cope with the impact of five consecutive years of drought by streamlining wheat imports for human consumption and supporting small-scale producers through the provision of barley for milk production and climate-resistant seeds for wheat producers. An earlier parent project had helped to mitigate the effects of the war in Ukraine on food security and assist the country in overcoming financial market access difficulties and rising global prices. The project enabled Tunisia to purchase 701,000 tons of wheat and 237,000 tons of barley, while new emphasis is placed on securing seed production and updating sector knowledge to inform policy making and the reform agenda.  

• Since 2020, the World Bank has invested over US$120 million in Tunisia's health sector, marking its first major engagement in the country's healthcare. This partnership, initiated in response to the COVID-19 crisis, enabled the rapid mobilization of essential personal protective equipment (PPE) for frontline workers and the efficient distribution of medical oxygen to 118 public medical centers, significantly enhancing the capacity of intensive care units and emergency departments. The collaboration also facilitated the procurement and deployment of over six million vaccine doses, contributing to administering approximately 13.2 million doses and strengthening national immunity. Å·ÃÀÈÕb´óƬ supported the development of the eVax digital system for vaccine appointments and certificates. As the pandemic subsided, the focus shifted to fortifying the healthcare system's resilience against future shocks, including investments in clinical, emergency, and surgical care, as well as expanding infrastructure for chronic disease management and pandemic preparedness.

• financed by the World Bank and the French Development Agency (AFD), supports the government in strengthening disaster risk management and financing. Since its launch in late 2021, the program has helped protect nearly 65,000 vulnerable people from flooding in Bizerte, Monastir, and Nabeul. Early warning systems are being implemented in three pilot areas¡ªK¨¦bili, Ghardimaou, and Greater Tunis¡ªto improve preparedness and response. A draft disaster risk financing strategy has been developed, and progress continues on an actuarial model. A decree to establish a permanent disaster resilience structure is under preparation, aiming to strengthen Tunisia¡¯s risk governance.

• supports the government's Startup Tunisia program by targeting startups and innovative SMEs with high growth potential and enhancing the entrepreneurship financing ecosystem. This includes developing venture capital funds, incubators, accelerators, and co-working spaces. The project aims to mobilize additional investments from private sector funds for innovative startups and through direct co-investments in innovative SMEs alongside private sector partners. So far, the Anava fund of funds, established by the project, has invested $30 million in four subsidiary funds, raising $67 million. Eleven startup investments have been made through these funds, with plans to accelerate investments over the coming year. The $17 million InnovaTech co-investment fund for innovative SMEs has made seven investments, using about 25% of its available funds. Combined, these two components have mobilized an additional $37 million in private financing.

Last Updated: Apr 25, 2025